{
  "id": 16986479,
  "title": "US Fed holds interest rates steady despite 'too high' inflation",
  "url": "https://urgent.news/2026/10/29/us-fed-holds-interest-rates-steady-despite-too-high-inflation",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-29T00:12:37.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/economy/2026/10/1565885/us-fed-holds-interest-rates-steady-despite-too-high-inflation"
  },
  "original_language": "en",
  "account": "On Wednesday, the US Federal Reserve maintained interest rates, despite Chairman Kevin Warsh asserting that inflation remained too high. The Federal Open Market Committee, comprising 12 members, voted 10-2 to keep rates at a target range between 3.75 to 4.00 percent, citing the need for more data to combat inflation after raising rates for the first time in three years in September. Two members, Governor Lisa Cook and Cleveland Fed President Beth Hammack, disagreed, calling for an immediate quarter-point rate hike. Warsh stated that the Federal Open Market Committee required additional information to determine the appropriate policy stance to ensure a timely return of inflation to the two-percent goal. The committee is scheduled to meet again in early December.\n\nThe Fed's decision came six days before the crucial midterm elections in November, where the Democratic Party aims to seize control of both houses of Congress from President Donald Trump's Republicans. Warsh emphasized that politics did not play a role in the central bank's decision, reaffirming his support for the Fed's independence. US Treasury Secretary Scott Bessent expressed confidence in Warsh's ability to balance economic growth and inflation. Warsh also announced that the Fed would reduce the frequency of interest rate setting meetings in the next two years, holding eight meetings in 2027 and 2028, but only seven times in 2028 and six times in 2029.\n\nWarsh acknowledged that the economy is growing strongly and questioned whether the investment boom in artificial intelligence was fueling inflation. He questioned whether the economy is running \"too hot\" or \"too strong.\" Despite the monetary policy stance, the US unemployment rate has remained stable around 4.2 percent over the past year, with positive job growth in specific sectors. Canada's central bank recently raised its key rate to 2.5 percent, its first increase since July 2023.",
  "summary": "WASHINGTON: The US Federal Reserve on Wednesday held interest rates steady, even as its Chairman Kevin Warsh said inflation remained \"too high\" but insisted that politics played no part in the central bank's decision not to continue raising rates days before crucial midterm elections.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "The Jakarta Post",
        "title": "US Fed holds interest rates steady despite 'too high' inflation",
        "url": "https://urgent.news/2026/10/29/us-fed-holds-interest-rates-steady-despite-too-high-inflation-16993494",
        "published": "2026-10-29T02:06:40.000Z"
      },
      {
        "outlet": "Business Recorder",
        "title": "Indian shares set for positive start after Fed holds rates steady; elevated oil weighs",
        "url": "https://urgent.news/2026/10/29/indian-shares-set-for-positive-start-after-fed-holds-rates-steady",
        "published": "2026-10-29T02:52:55.000Z"
      },
      {
        "outlet": "RTHK English",
        "title": "HKMA warns of interest rate risks as Fed holds steady",
        "url": "https://urgent.news/2026/10/29/hkma-warns-of-interest-rate-risks-as-fed-holds-steady",
        "published": "2026-10-29T03:01:30.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}