Fed holds rates at 3.75% to 4% in 10-2 vote

The Federal Open Market Committee kept its benchmark interest-rate target at 3.75% to 4% on October 28, voting 10-2 to leave borrowing costs unchanged as officials weighed elevated inflation against continued economic growth. Federal Reserve Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, favoring a quarter-percentage-point increase. The decision followed a rate increase in September that brought the target range to its current level. It was the first time Cook had dissented since joining the central bank in 2022, according to reports. In its post-meeting statement, the Fed said inflation remained elevated and that more information would help the committee determine the appropriate policy stance to return inflation to its 2% goal. The statement retained the committee’s commitment to price stability but did not indicate what action it would take at its next meeting. The committee described economic activity as expanding at a strong pace, upgrading its assessment from “solid” in September. It also said job gains had kept pace with workforce growth and the unemployment rate had changed little. Those assessments leave policymakers balancing persistent price...