economy
Fed Holds Rates at 3.75%-4% on 10-2 Vote; Chair Warsh Says Politics Played No Role and Announces Changes to Future Meetings
The Federal Reserve's rate-setting committee voted 10-2 on Wednesday to keep its benchmark rate at 3.75% to 4%. The Guardian reports the two dissenters preferred a rate increase, and the Daily Wire names them as Cleveland Fed President Beth Hammack and Governor Lisa Cook. The Fed raised rates by a quarter point in September (per CBS and The Hill), and CBS reports inflation remains high. Fed Chair Kevin Warsh told reporters politics played no role in the decision, which came six days before the midterm elections. Reuters reports Warsh also announced changes to how future committee meetings will run. Details of the changes have not been disclosed. Wall Street ended the day higher, according to Reuters.
Sep 2026Fed raises rates by a quarter point, its first hike in three years.
Oct 28Committee votes 10-2 to hold rates at 3.75%-4%; Warsh holds a press conference and announces meeting changes.
Oct 28Wall Street ends higher after the decision.
Why It Matters
Borrowing costs such as mortgages and car loans are affected by the Fed's rate decisions, which stay unchanged for now after the September increase. Inflation remains elevated, so households keep facing high prices and high interest rates at once. The decision came days before the midterms, and the Fed chair has publicly said politics played no role. Investors are also reading the Fed's statement for hints on Treasury yields, which Reuters says the Fed's message left unclear.
What's Next
Confidencemoderate
Agreementbroad