Fed Holds Rates Steady as Two Officials Favor a Hike

The Federal Reserve held its benchmark interest rate steady at 3.75% to 4% in a 10-2 vote, with two policymakers favoring a quarter-point increase as inflation remained elevated.

Fed Gov. Lisa Cook and Cleveland Fed President Beth Hammack dissented, voting to raise rates.

The policy statement described inflation as “elevated” and emphasized the need for additional information before determining the appropriate course.

“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 percent goal,” the statement said.

Policymakers offered an upbeat assessment of the economy, saying activity expanded at a “strong pace” and domestic spending remained “resilient.” The unemployment rate changed little, while capital investment was “robust.”