Fed Holds Rates at 3.75%-4.00%, Signals Hikes May Follow as Inflation Stays Elevated

The Federal Reserve held its benchmark interest rate steady on Wednesday in a 10-2 vote, keeping the target range at 3.75%-4.00% as it waits for more inflation data and delays changes until after next week's US midterm elections. The central bank said inflation "remains elevated" and hinted further hikes may come depending on incoming data. "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% goal," the Federal Open Market Committee said in its statement. The Fed upgraded its view of the economy to "strong" from "solid." Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of a quarter-percentage-point hike. Investors expect further increases beginning in December and continuing into 2027, with inflation running roughly a percentage point above target. Chairman Kevin Warsh holds a press conference at 2:30 p.m. EDT.