From BigGo Finance · BigGo Finance · · 1m 10s
Fed Holds Rates at 3.75%-4%; December Hike Odds at 85%
Fed keeps rates steady at 3.75%-4% as December hike odds hit 85%.
In brief
Fed keeps rates steady at 3.75%-4% as December hike odds hit 85%. The US Federal Reserve held interest rates at 3.75%-4.00% with 85% chance of a December hike. Originally reported by BigGo Finance.
Fed Holds Rates
The US Federal Reserve held its benchmark interest rate at 3.75%-4.00% on the 28th.
Vote Split
The vote was 10-2 with Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting.
Chair Warsh's Stance
Chair Kevin Warsh stressed inflation remains too high with no exceptions to price stability.
“There are no exceptions or caveats to delivering price stability, and there will not be”
Economic Assessment
The Fed upgraded economic activity from "solid" to expanding at a "strong pace".
Market Reaction
10-year Treasury yield rose to 5.047% as interest-rate futures price 85% chance of December hike.
Fed Meeting Structure
Fed plans to overhaul meeting structure starting in 2027 with one strategic meeting per year.
Inflation Concerns
Chair Warsh noted inflation remains too high with financial conditions tightening.
Political Context
Fed officials mentioned no political considerations during the meeting despite midterm elections approaching.
“there was no mention of the political situation or elections during the meeting, and political considerations never played a role”
The main idea
The US Federal Reserve held interest rates at 3.75%-4.00% with 85% chance of a December hike.
