The Federal Reserve kept its benchmark interest rate at 3.75%–4% on October 28, while two policymakers dissented in favor of a quarter-point increase.
The committee’s 10–2 vote left rates unchanged after a September hike. Officials weighed elevated inflation against signs of continued economic strength. Governor Lisa Cook and Cleveland Fed President Beth Hammack were the two dissenters, and both preferred raising the federal funds rate by 0.25 percentage point.
In its statement, the Fed said economic activity was expanding strongly. It said domestic spending remained resilient, job gains were keeping pace with the workforce, and inflation remained elevated. The Fed also pointed to uncertainty, partly related to geopolitical developments.
It said it would assess incoming information as it works toward its 2% inflation goal. At a news conference, Chair Kevin Warsh said inflation was still too high. He described consumer spending and business investment as strong.
The decision broadly matched expectations. The two votes for a hike underscored that policymakers differ over whether current rates are high enough to bring price pressures down.