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Tuesday 07 October 2025 21:21:04 GMT
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The Federal Reserve held interest rates steady on Wednesday amid growing pressure to take a firmer approach to bringing inflation back to the central bank's longstanding 2% target.   The move leaves the target range for the federal funds rate at 3.5% to 3.75%, where it has been since December following three consecutive rate cuts.   The Federal Open Market Committee (FOMC) vote was 9–3, with the three dissenters, all regional bank presidents, favoring a 25-basis-point rate hike to address inflation, which has now run above the central bank's target for more than five years.   The meeting, the second led by new Federal Reserve Chair Kevin Warsh, marked the first time since September 2016 that three policymakers dissented with the same view of where rates should be.   The outcome of the vote was uncertain heading into the two-day policy meeting, with investors giving it roughly a one-in-three chance of a 25-basis-point rate hike.   In a press conference, Mr. Warsh said the economy has shown
The Federal Reserve held interest rates steady on Wednesday amid growing pressure to take a firmer approach to bringing inflation back to the central bank's longstanding 2% target. The move leaves the target range for the federal funds rate at 3.5% to 3.75%, where it has been since December following three consecutive rate cuts. The Federal Open Market Committee (FOMC) vote was 9–3, with the three dissenters, all regional bank presidents, favoring a 25-basis-point rate hike to address inflation, which has now run above the central bank's target for more than five years. The meeting, the second led by new Federal Reserve Chair Kevin Warsh, marked the first time since September 2016 that three policymakers dissented with the same view of where rates should be. The outcome of the vote was uncertain heading into the two-day policy meeting, with investors giving it roughly a one-in-three chance of a 25-basis-point rate hike. In a press conference, Mr. Warsh said the economy has shown "impressive resilience," citing economic growth, job gains and a stable unemployment rate, but reiterated that the committee remained focused on restoring price stability. "For some households, businesses and market professionals, five years of high inflation have left a mistaken impression that's hard to shake that the Fed's implicit inflation target was somehow above 2%," he said. "Let me reiterate: there is no soft inflation target. There is no soft implicit target, not on this committee's watch. There's only a target, and it's 2%." #fed #kevinwarsh #federalreserve #cspan

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