Central bank keeps rates unchanged in 10-2 vote just days before midterm elections; two officials preferred a hike.
The Federal Reserve left interest rates unchanged on Wednesday, maintaining the target range at 3.75% to 4%. The decision came by a 10-2 vote, with Governors Lisa Cook and Beth Hammack dissenting in favor of a quarter-point increase.
Fed Chair Kevin Warsh said economic activity remains strong and job gains are solid, but inflation is still elevated. He pointed to higher energy prices and robust capital investment as factors keeping price pressures alive. Warsh emphasized that the central bank will gather more data before its December meeting to decide the next steps.
The hold comes less than a week before the November 3 midterm elections, where the cost of living has become a central campaign issue. President Donald Trump has repeatedly called for lower rates, arguing that high borrowing costs are hurting American families and businesses.
Markets largely expected the pause. The Fed last raised rates in September, its first increase in three years. Officials signaled they remain focused on returning inflation to the 2% target without slowing the economy unnecessarily.
