Fed Holds Rates Steady Amid Inflation Concerns

The Federal Reserve held its benchmark rate at 3.75% to 4% on Wednesday. The 10-2 vote came after a September hike.

3.7% annual CPI inflation in September, up from 3.4% in August.
6.3% rise in the Producer Price Index over 12 months through September.
Cook and Hammack wanted a quarter-point increase. It was Cook's first dissent.
Under 10% was the market-implied chance of a hike before the decision.

Why it matters: Inflation has topped the Fed's 2% target for more than five years and has picked up since September. Higher energy costs tied to the Iran war are a major driver.

A future hike could raise costs on credit cards, auto loans and mortgages.
Unemployment remains low, and Q3 growth is tracking at 3.4% annualized.

The story so far

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Oct 2810:21 AMFed Holds Rates Steady Amid Inflation ConcernsYou are here
Oct 282:55 PMWarsh Plans to Eliminate Some Fed Rate-Setting Meetings5 sourcesLatest

How 59 sources split on this story

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Coverage by lean% of 59 sources

59 sources · 115 articles · 41% Center coverage

Where they split: Coverage divides over whether the hold reflects caution about data or reluctance to hike days before the midterms.

Center coverage, 24 sources: The center treats it as a patient pause amid internal division, with markets focused on a likely December hike.

CNBC2hHere are five key takeaways from the Fed rate decision and Warsh news conference CTV News5hU.S. stocks remains steady after Fed says it won’t raise interest rates IBTimes3hThe Fed Kept Rates Unchanged. Stocks Edged Up.The National Desk4hFed chair says third quarter GDP is above three percent Associated Press19hFederal Reserve likely to skip rate hike despite elevated inflation Axios5hFed leaves rates steady as governor Lisa Cook dissents Bloomberg53mUS Stock Futures Decline, Fed Keeps Rates Steady: Markets Wrap Financial Times2hFed holds fire on interest rates despite intensifying inflation Forbes5hFed Holds Interest Rates Despite High Inflation Data As Midterms Loom Fortune4hFor the first time since 1992, a Fed governor and president dissented together, as Kevin Warsh says the 'monetary medicine' is starting to work | Fortune PBS NewsHour9hWATCH LIVE: Fed chair Warsh holds briefing after latest interest rate decision Semafor3hFed holds rates steady despite dissents The Hill5hFederal Reserve holds interest rates steady in face of persistent inflation USA Today11hPatience expected from Fed in final rate decision before midterms WPXI Pittsburgh19hUS stocks hold steady as the countdown ticks to a Federal Reserve decision on interest rates Japan Times16hBank of Japan unlikely to take rates higher this week KSAT 12 San Antonio1dFederal Reserve likely to skip rate hike despite elevated inflation MarketWatch3hWhy did the Fed hold off on raising interest rates? Warsh says it’s because an ‘information rich’ period is coming.NOTUS5hFederal Reserve Maintains Interest Rates Ahead of the Midterms - The Washington Sun NPR5hFed holds interest rates steady even as inflation remains stubborn PennLive4hFederal Reserve holds interest rates steady as inflation remains elevated Reuters3dFed to hit pause on rate hikes, but maybe not for long WKBN Youngstown7hUS stocks hold steady as the countdown ticks to a Federal Reserve decision on interest rates Yahoo News3hFed votes in split decision to hold interest rates steady despite sticky inflation

Left coverage, 15 sources: The left frames the hold against rising inflation and consumer strain, linking high gas prices to Trump's handling of the Iran war.

NBC News5hFederal Reserve leaves interest rates unchanged despite rising inflation CBS News5hFederal Reserve holds interest rates steady even as inflation remains high CNN3hDid the Fed just make a huge mistake?Los Angeles Times3hThe bond market swings, but stocks remain steady after the Fed says it won't raise interest rates The New York Times14hThe Federal Reserve Will Release Its Interest Rate Decision Today. Here’s What to Watch.Business Insider3h3 takeaways from the October Fed meeting MSNBC2hWednesday’s Mini-Report, 10.28.26 Political Wire5hFed Leaves Rates Steady The Boston Globe19hFederal Reserve likely to skip rate hike despite elevated inflation The Independent4hTrump's Federal Reserve holds interest rates steady despite soaring inflation concerns ABC News14hFederal Reserve set to issue interest rate decision as midterm elections loom Al Jazeera4hFed leaves interest rates unchanged despite inflation in the US Boston.com3hFederal Reserve keeps rates unchanged despite elevated inflation HuffPost9hU.S. Stocks Hold Steady As The Countdown Ticks To A Federal Reserve Decision On Interest Rates Politico5hTrump-targeted Lisa Cook dissents as Fed puts rates on hold

Right coverage, 20 sources: The right emphasizes the dissents, election timing and investor bets on a December hike that could put the Fed at odds with Trump.