Fed holds rates steady

Federal Reserve Chairman Kevin Warsh and colleagues voted Wednesday to hold their benchmark interest rate steady, signaling they are not retreating from fighting inflation.

Inflation keeps climbing

Consumer prices in September rose three point seven percent from a year ago, a bigger annual increase than the previous month. The Fed acknowledged inflation remains elevated.

“Inflation remains elevated”

Two officials wanted action

Fed governor Lisa Cook and Beth Hammack of the Cleveland Federal Reserve Bank voted to raise rates by a quarter percentage point Wednesday, while a majority opted to stand pat.

December hike expected

Fed policymakers are widely expected to raise their benchmark interest rate at their December meeting to tamp down demand and bring prices under control.

Uneven impact on Americans

Consumer spending remains resilient among upper-income shoppers benefiting from rising stock markets. Lower and middle-income Americans struggle as average wages rose just three percent in twelve months ending September.

“Their purchasing power is actually declining.”

AI investment defies rate pressure

Booming investment in artificial intelligence shows no sign of slowing despite Fed rate increases. The frenzied push to build AI data centers is pushing up prices for construction materials and electronic equipment.

“The A.I. companies don't care what interest rate they have to pay”