Fed holds rates steady as two officials dissent for a hike

The Federal Reserve held its benchmark interest rate steady on Wednesday, with two Federal Open Market Committee members dissenting in favor of a quarter-point increase as policymakers assessed inflation and economic conditions. The committee voted 10-2 to maintain its target range at 3.75% to 4.00%, according to the Fed’s statement. Governor Lisa Cook and Cleveland Fed President Beth Hammack preferred raising the range by 0.25 percentage point. The decision came six days before the U.S. midterm elections. The Fed’s statement said inflation remained elevated and upgraded its assessment of economic activity from solid to strong. It also said the committee would use additional information to determine the policy stance needed to return inflation to its 2% goal. At a news conference, Fed Chair Kevin Warsh said policymakers chose to wait and evaluate incoming information. He said the committee’s earlier measures were beginning to have an effect, but cautioned that there were no firm conclusions. The statement and Warsh’s remarks did not commit the Fed to another increase or establish when one might occur. September consumer prices were 3.7% higher than a year earlier, up from 3.4%...