Fed holds interest rates steady amid rising inflation as midterm elections approach
Cleveland Fed president Beth Hammack and Fed governor Lisa Cook dissented, advocating for a quarter percentage point increase.
Hammack has dissented twice since July, while this marked Cook’s first dissent.
Inflation concerns
Officials are analysing more data to guide future decisions on interest rates.
The newest inflation data indicates price increases have accelerated since September.
The Consumer Price Index rose to 3.7% last month, up from 3.4% in August.
Excluding food and energy prices, CPI increased to 2.6%, compared to 2.4% in August.
Wholesale prices surged over 6% last month, with the core Personal Consumption Expenditures Price Index expected to exceed 3%.
During a press conference, Federal Reserve Board Chairman Kevin Warsh stated that containing inflation remains a priority.
Warsh acknowledged the current measures are starting to yield results, but cautioned that price stability has not yet been achieved.
He confirmed plans for a new meeting structure next year, maintaining eight annual meetings but dedicating one to strategic monetary policy only.
In 2028, the frequency of strategy meetings will increase to two, while policy-setting meetings will drop to six.
