Fed Holds Rates at 3.75%-4% as US Growth Hits 3.4% and Inflation Stays at 3.7%
Updated
Updated · BBC.com · Oct 29
Fed Holds Rates at 3.75%-4% as US Growth Hits 3.4% and Inflation Stays at 3.7%
3 articles · Updated · BBC.com · Oct 29
Summary
The Federal Reserve left its benchmark rate unchanged at 3.75%-4%, saying it wants more data before deciding whether another move is needed at its Dec. 8-9 meeting.
Fresh figures reinforced that wait-and-see stance: US GDP grew at a stronger-than-expected 3.4% annualized pace in the third quarter, while September inflation remained elevated at 3.7%.
Private investment jumped 19.4% annualized—helped by AI spending—and personal consumption rose 3.8%, underscoring an economy Warsh called resilient even as credit conditions tighten.
The decision was not unanimous: 10 of 12 policymakers backed a hold, while Governor Lisa Cook and Cleveland Fed President Beth Hammack favored lifting rates to 4%-4.25%.
For households and businesses, the pause means borrowing and savings rates are less likely to change immediately, though persistent inflation keeps pressure on the Fed to consider another hike this year.