Federal Reserve holds interest rates steady in split vote ahead of midterm elections
Yahoo Finance·
- The Federal Reserve voted 10 to 2 to maintain its benchmark interest rate in the 3.75% to 4% range amid persistent inflation, with two officials dissenting in favor of a 25-basis-point rate hike.
- Federal Reserve Chair Kevin Warsh stated that political factors played no role in the decision, while upgrading the economic growth assessment to strong and announcing plans to modify the FOMC meeting schedule starting next autumn.
- The decision caused mixed reactions in financial markets, as bond yields climbed with the 10-year Treasury yield moving above 5% and traders continued to price in potential future rate hikes.
