Fed Holds Rates Steady as Two Officials Favor a Hike

The Federal Reserve held its benchmark interest rate steady at 3.75% to 4% in a 10-2 vote, with two policymakers favoring a quarter-point increase as inflation remained elevated.

Fed Gov. Lisa Cook and Cleveland Fed President Beth Hammack dissented, voting to raise rates.

The policy statement described inflation as “elevated” and emphasized the need for additional information before determining the appropriate course.

“The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee’s 2 percent goal,” the statement said.

Policymakers offered an upbeat assessment of the economy, saying activity expanded at a “strong pace” and domestic spending remained “resilient.” The unemployment rate changed little, while capital investment was “robust.”

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About Joe Palmisano

Joe Palmisano is editorial director of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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