Fed holds rates as Cook and Hammack push for a hike
The Federal Reserve held its benchmark rate at 3.75% to 4% on Wednesday, CNBC and ABC News report. Governor Lisa Cook, in her first dissent, and Cleveland Fed President Beth Hammack voted against the hold because they wanted a quarter-point hike, CNBC says. Chair Kevin Warsh also said the Fed will hold seven rate meetings in 2027 instead of eight.
The Federal Reserve kept its benchmark interest rate in a range of 3.75% to 4% on Wednesday, CNBC and ABC News report. The rate has been there since the Fed raised it by a quarter point in September, its first increase in three years, ABC News says.
The vote was 10 to 2. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented because they wanted another quarter-point hike, CNBC reports. CNBC says it was Cook's first dissent since she joined the Fed in 2022. She is also fighting President Donald Trump's effort to remove her, with a hearing set for early November.
The Fed's statement said "Inflation remains elevated" and that "the accumulation of more information" will guide its next step, CNBC reports. CNBC says the statement upgraded its view of the economy to "expanding at a strong pace," from "solid" in September. ABC News says prices rose 3.7% in September from a year earlier, well above the Fed's 2% goal.
At his news conference, Chair Kevin Warsh announced a schedule change. Starting in 2027, one of the eight yearly meetings will focus only on broad strategy, with no rate vote and no statement, CNBC reports. That leaves seven rate meetings next year, and Warsh said he expects two strategy meetings in 2028.
Markets now look to December. ABC News says the CME FedWatch tool puts the odds of a quarter-point hike at that meeting near 80%. ABC News also notes a weak September jobs report, with 29,000 jobs added, while CNBC points to strong growth tracking.
What we know: The Fed held rates at 3.75% to 4% on a 10 to 2 vote. Cook and Hammack wanted a hike. The Fed will hold seven rate meetings in 2027.
What we don't: Whether the Fed hikes in December. What Thursday's inflation data will show.
Where outlets agree CNBC and ABC News report the Fed held rates at 3.75% to 4% on Wednesday and that Chair Kevin Warsh announced fewer rate meetings starting in 2027.
Where they differ CNBC stresses strong growth, citing an Atlanta Fed tracker near 3.4%, while ABC News highlights a weak September jobs report of 29,000 jobs.