Fed Holds Rates Steady Amid Inflation Concerns

The Federal Reserve held its benchmark rate at 3.75% to 4% on Wednesday. The 10-2 vote came after a September hike.

3.7% annual CPI inflation in September, up from 3.4% in August.
6.3% rise in the Producer Price Index over 12 months through September.
Cook and Hammack wanted a quarter-point increase. It was Cook's first dissent.
Under 10% was the market-implied chance of a hike before the decision.

Why it matters: Inflation has topped the Fed's 2% target for more than five years and has picked up since September. Higher energy costs tied to the Iran war are a major driver.

A future hike could raise costs on credit cards, auto loans and mortgages.
Unemployment remains low, and Q3 growth is tracking at 3.4% annualized.

The story so far

5 steps · since Oct 28

Oct 2810:21 AMFed Holds Rates Steady Amid Inflation ConcernsYou are here
Oct 282:55 PMWarsh Plans to Eliminate Some Fed Rate-Setting Meetings5 sources
Oct 297:41 AMFed's Preferred Inflation Gauge Rises Slightly in September15 sources
Oct 298:37 AMUS Economy Grows 3.4% on Consumer Spending, AI Investment38 sources
Oct 298:43 AMFed's Preferred Inflation Gauge Accelerates in October3 sourcesLatest

How 64 sources split on this story

Source landscape

Factuality

High

Mixed

Low

Strong LeftLeftLean LeftCenterLean RightRightStrong Right

Political Bias

Coverage by lean% of 64 sources

64 sources · 141 articles · 42% Center coverage

Where they split: Coverage divides over whether the hold reflects caution about data or reluctance to hike days before the midterms.

Center coverage, 27 sources: The center treats it as a patient pause amid internal division, with markets focused on a likely December hike.

CNBC1w+Treasury yields ease after Federal Reserve rate hold IBTimes1w+The Fed Held Rates Steady. But an Expert Warns Investors May be Underestimating Volatility Ahead.CTV News1w+U.S. stocks remains steady after Fed says it won’t raise interest rates Bloomberg1w+Dollar’s Rate-Fueled Rally Set to Ride Out US Midterm Gridlock Fortune1w+Fed Chair Kevin Warsh’s warning to AI investors: 'Interest rates get in the cracks' | Fortune Financial Times1w+The Fed plays for time (but doesn’t have much)The National Desk1w+Fed chair says third quarter GDP is above three percent Yahoo News1w+What the Fed's interest rate decision means for your bank accounts, loans, credit cards, and investments Associated Press1w+Federal Reserve likely to skip rate hike despite elevated inflation Axios1w+Fed leaves rates steady as governor Lisa Cook dissents Forbes1w+Fed Holds Interest Rates Despite High Inflation Data As Midterms Loom Japan Times1w+Fed holds fire as Warsh telegraphs more hikes without saying it MarketWatch1w+Did the Fed make a mistake with its October rate pause? The Treasury could help save the day.PBS NewsHour1w+WATCH LIVE: Fed chair Warsh holds briefing after latest interest rate decision RealClearPolitics1w+The Federal Reserve's Hawkish Hold Semafor1w+Fed holds rates steady despite dissents The Hill1w+Federal Reserve holds interest rates steady in face of persistent inflation USA Today1w+Patience expected from Fed in final rate decision before midterms WKBN Youngstown1w+Federal Reserve keeps rates unchanged despite elevated inflation WPXI Pittsburgh1w+US stocks hold steady as the countdown ticks to a Federal Reserve decision on interest rates abc27 (WHTM)1w+Federal Reserve holds interest rates steady in face of persistent inflation KSAT 12 San Antonio1w+Federal Reserve likely to skip rate hike despite elevated inflation NOTUS1w+Federal Reserve Maintains Interest Rates Ahead of the Midterms - The Washington Sun NPR1w+Fed holds interest rates steady even as inflation remains stubborn PennLive1w+Federal Reserve holds interest rates steady as inflation remains elevated Reuters1w+Fed to hit pause on rate hikes, but maybe not for long Sky News1w+US holds interest rates - ahead of possible Bank of England hike

Left coverage, 16 sources: The left frames the hold against rising inflation and consumer strain, linking high gas prices to Trump's handling of the Iran war.

NBC News1w+Federal Reserve leaves interest rates unchanged despite rising inflation CBS News1w+Federal Reserve holds interest rates steady even as inflation remains high The New York Times1w+In Moving Gradually, Fed Risks Having to Play Catch-Up to Quell Inflation CNN1w+Did the Fed just make a huge mistake?Los Angeles Times1w+The bond market swings, but stocks remain steady after the Fed says it won't raise interest rates Business Insider1w+3 takeaways from the October Fed meeting HuffPost1w+Federal Reserve Keeps Rates Unchanged Despite Elevated Inflation MSNBC1w+Wednesday’s Mini-Report, 10.28.26 Political Wire1w+Fed Leaves Rates Steady The Boston Globe1w+Federal Reserve likely to skip rate hike despite elevated inflation The Independent1w+Trump's Federal Reserve holds interest rates steady despite soaring inflation concerns ABC News1w+Federal Reserve set to issue interest rate decision as midterm elections loom Al Jazeera1w+Fed leaves interest rates unchanged despite inflation in the US Boston.com1w+Federal Reserve keeps rates unchanged despite elevated inflation Politico1w+Trump-targeted Lisa Cook dissents as Fed puts rates on hold Raw Story1w+Economist ‘puzzled’ as Trump’s Fed chair holds ‘monetary medicine’ until after midterms

Right coverage, 21 sources: The right emphasizes the dissents, election timing and investor bets on a December hike that could put the Fed at odds with Trump.