Federal Reserve issues FOMC statement
The central bank held its target range while two policymakers argued for another increase.
TL;DR
- The Federal Reserve kept its benchmark target range at 3.75% to 4%.
- Lisa D. Cook and Beth M. Hammack preferred a 1/4 percentage point increase.
- The committee said inflation remains elevated and it needs more information to determine the appropriate stance.
The Federal Reserve left the federal funds target range at 3.75% to 4% following its October meeting. The statement passed by a 10–2 vote. [1] [2]
Lisa D. Cook and Beth M. Hammack voted against the decision, preferring a 1/4 percentage point increase. Reuters reported that the two dissents came as the central bank awaited more evidence on inflation. [1] [2]
The committee described economic activity as expanding at a strong pace and said job gains had kept pace with the workforce. It also said inflation remained elevated and repeated its 2% goal. [1]
The statement said additional information would help determine the appropriate policy stance. It did not commit the committee to a rate move at its next meeting. [1]
Why it matters
The decision leaves borrowing costs unchanged while the dissent shows a live disagreement over how quickly inflation must fall before policy can change.
Editor's note
The rate decision and dissents are confirmed by the statement. A future change is conditional, not a forecast.