By Radarr Africa Business Desk
LAGOS, October 29 (Radarr Africa) – The US Federal Reserve held its benchmark interest rate at a target range of 3.75% to 4% on Wednesday, with two officials voting for a quarter-point increase, according to reports from Yahoo Finance and Fox Business.
The Federal Open Market Committee voted 10-2 to hold, Yahoo Finance reported. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, both preferring a hike. The vote at the previous meeting in September, when the Fed raised rates by 25 basis points, had been 12-0.
Fox Business described the September move as the Fed’s first rate increase since July 2023. It said policymakers opted to wait for additional economic data this time, and that the decision came just before the US midterm elections.
Yahoo Finance, which tracked changes in the policy statement, said the committee upgraded its assessment of the economy from “solid” to “strong”. It replaced wording that tied policy to a return to 2% inflation with language saying more information will help the committee set the right stance. The word “timelier” also became “timely”, which Yahoo Finance read as signalling less urgency about bringing inflation down.
The decision follows hotter-than-expected inflation data. Yahoo Finance reported that US consumer prices rose 3.7% year on year in September and 0.6% month on month, while core prices rose 2.6% year on year and 0.3% month on month.
Fed Chair Kevin Warsh, who was holding his fourth meeting as chair, was due to give a press conference at 2:30 p.m. Eastern Time. Business Today reported that he is confident inflation can return to the 2% target without causing job losses or derailing the expansion. It said he expects the third-quarter gross domestic product report to show strong investment, resilient consumer spending and faster growth than in the first half of the year.
According to Business Today, Warsh said the economy is not too hot and that productivity gains could allow faster growth without higher inflation. He also said higher interest rates are tightening credit and affecting investment in artificial intelligence infrastructure. The statement describes growth as occurring at a “strong pace” and says inflation remains elevated, the outlet reported.
The statement also hints that further rate increases may still be needed, because some officials worry that AI-driven investment and strong consumer spending are pushing prices up, Business Today said.
Yahoo Finance said the Fed’s dot plot points to a second rate rise in 2026. Before the meeting, the CME FedWatch tool showed about a 90% chance of no move in October and about 84% odds of a hike in December. The next meeting is scheduled for 8 and 9 December.
Before the announcement, trading was muted, Yahoo Finance reported. The S&P 500 was up about 0.2% and the Dow about 0.3%, while the 10-year Treasury yield was about 5.02%. The reports reviewed did not give market moves after the decision.
Business Today also reported a change to the Fed’s calendar. From 2027, the Fed will keep eight Federal Open Market Committee meetings a year, but one session in 2027 will focus solely on broad monetary policy strategy. In 2028, two meetings will be strategy-focused, leaving six for rate decisions.
