Fed Holds Rates at 3.75%–4.00%

The Federal Reserve held its benchmark interest rate at 3.75%–4.00% in a 10–2 vote, waiting for more inflation and economic data before deciding on further action. The Fed said inflation remains elevated and upgraded its assessment of economic growth; dissenters Lisa Cook and Beth Hammack favored a quarter-point increase. Rising energy costs linked to the Iran conflict are adding to inflation concerns, while policymakers weigh persistent price pressures against signs of resilience in the economy and labor market. Wall Street was little changed to modestly higher after the announcement, and investors generally anticipated another rate hike by December. The decision came days before the U.S. midterm elections.