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

The Federal Reserve held its benchmark interest rate at 3.75% to 4% on October 28, as 10 members of its policy committee voted to wait for more economic information and two dissented in favor of an increase. The Federal Open Market Committee’s decision followed a quarter-percentage-point increase in September. Federal Reserve Governor Lisa Cook and Cleveland Fed President Beth Hammack each supported raising rates by another quarter point. It was Cook’s first dissent on a policy decision; Hammack had also favored an increase at an earlier meeting. The Fed said inflation remained elevated and that additional information would help officials determine a policy stance consistent with returning inflation to its 2% goal. The committee described economic activity as expanding at a strong pace, upgrading its assessment from “solid” in September. It also said domestic spending was resilient, productivity growth was strong, capital investment was robust and the unemployment rate had changed little. Chair Kevin Warsh said officials needed more evidence to assess the effects of September’s increase. He said financial and credit conditions had tightened for some businesses and households,...