Fed holds rates at 3.75% to 4% in a split vote as two officials push for another hike

The Federal Reserve left its benchmark interest rate unchanged on Wednesday, holding the federal funds target range at 3.75% to 4%, six days before the midterm elections.

The vote was 10-2. Governor Lisa D. Cook and Cleveland Fed President Beth M. Hammack dissented, preferring a quarter-point increase, according to the Fed's policy statement.

The Fed raised rates in September, its first increase since July 2023, Fox Business reported.

What the Fed said

Source: Federal Reserve.

The statement said more information will help policymakers decide how to return inflation to the Fed's 2% goal. Consumer prices rose 3.7% over the 12 months through September, Yahoo Finance reported.

Warsh on politics

At his news conference, Chair Kevin Warsh said politics played no role in the decision and that he heard no talk of politics during two days of meetings, Yahoo Finance reported. He declined to respond to criticism from President Trump, who has called for lower rates.

House Ways and Means Chair Jason Smith, a Republican, said it was long past time for rates to fall. Sen. Elizabeth Warren, a Democrat, blamed the president for higher rates, according to the same report.

What's next

Traders priced in more than an 80% chance of a quarter-point hike at the Fed's final meeting of the year, Dec. 8 and 9, according to CME FedWatch data cited by Yahoo Finance. That meeting includes new economic projections.