Fed Holds Rates at 3.75%-4.00% in 10-2 Vote; December Hike Odds Top 70%

The Federal Reserve left interest rates unchanged at 3.75% to 4.00% on Wednesday in a 10-2 vote, with Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting in favor of a quarter-point hike. Traders had priced roughly 90% odds of a hold before the 2 p.m. ET announcement, according to CME FedWatch. Bitcoin edged up about 0.2% to roughly $80,950 after the decision, remaining below a resistance zone between $81,000 and $82,500. Futures markets put the odds of a quarter-point increase at the Dec. 8-9 meeting above 70%, and minutes from September's meeting showed most officials judged another increase likely appropriate by year-end. The Fed said economic activity is expanding at a strong pace, up from the "solid" pace cited in September, while inflation remains elevated. Consumer prices rose 3.7% in the 12 months through September, with gasoline up 9.1% in the month as U.S. crude settled at $99.90 a barrel Tuesday. The 10-year Treasury yield closed Tuesday at 4.99%, after peaking at 5.31% on Oct. 5. October jobs data is due Nov. 6 and October inflation data Nov. 10. Chair Kevin Warsh holds a press conference at 2:30 p.m.