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Fed holds rates steady as Warsh joins majority; two officials dissent for a hike

The pause keeps borrowing costs at 3.75% to 4.00% while inflation stays elevated, shaping expectations for the next policy meeting.

Photo: CNBC

What happened

The Federal Reserve left the federal funds rate unchanged at its current range of 3.75% to 4.00%, with Chairman Kevin Warsh joining a 10-2 majority. Real Estate News & Insights | realtor.com® The committee said inflation remains elevated and that accumulating more information would help determine the appropriate policy stance. Real Estate News & Insights | realtor.com® Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favour of a quarter-point increase. Real Estate News & Insights | realtor.com® Warsh also said the committee will reduce its schedule of rate votes to seven next year and six in 2028, down from eight. Real Estate News & Insights | realtor.com®

Around it

The Fed raised rates by a quarter point in September before holding steady at its October meeting. Ground News+1 San Francisco Fed President Mary Daly said Americans are on a treadmill of high inflation and that policymakers will likely need to tighten policy further, while noting that real wages are failing to keep pace with 3.7% inflation. CNBC+1 Recent data showed 165,000 jobs added and unemployment at 4.1%, which Daly called good news for American workers. Ground News New York Fed President John Williams said inflation remains too high amid tariffs and AI build-out pressures on prices. The Hill

What comes next

The Federal Open Market Committee will meet again on December 8 to 9. The Hill

Sources

  1. Real Estate News & Insights | realtor.com®Fed Pauses Interest Rate Hikes for Now as Key Midterm Elections Loom
  2. CNBCAmericans are on a 'treadmill of high inflation' and more rate hikes are likely, Fed's Daly says
  3. Ground NewsAmericans Are on a 'Treadmill of High Inflation' and More Rate Hikes Are Likely, Fed's Daly Says
  4. The HillFed's Williams says inflation too high, targets 2 percent

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