US Federal Reserve Holds Interest Rates Steady at 3.75-4 Percent
The Federal Reserve kept its policy rate unchanged while two officials advocated for a quarter-point increase.
KEY POINTS
- The Federal Reserve kept policy rates at 3.75-4 percent.
- Lisa Cook and Beth Hammack supported a 25-basis-point hike.
- US annual inflation reached 3.7 percent in September.
- Producer prices rose 6.3 percent year-on-year.
- The next rate decision is set for December 18, 2026.
The US Federal Reserve decided to hold its policy interest rate steady in the range of 3.75 percent to 4 percent. The central bank did not change interest rates, keeping them in line with market expectations.
Federal Reserve Governor Lisa Cook and Cleveland Federal Reserve Bank President Beth Hammack advocated for a 25-basis-point rate increase. The bank stated that future decisions would be shaped according to upcoming economic data.
“The bank stated that future decisions would be shaped according to upcoming economic data.”
The Fed noted that economic growth in the United States continues at a strong pace and domestic spending remains resilient. It also recorded that there has been no significant change in the unemployment rate.
Annual inflation in the United States rose to 3.7 percent in September, exceeding the previous two months’ level of 3.4 percent and the market expectation of 3.6 percent. Producer prices increased by 6.3 percent year-on-year, marking the fastest rise since December 2022 and significantly surpassing the expected 5.3 percent.
The next Federal Reserve interest rate decision is scheduled for December 18, 2026. High oil prices are likely to continue exerting upward pressure on inflation.
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