Fed Holds Rates Steady, Cuts Rate-Setting Meetings to 7 in 2027
Updated
Updated · The New York Times · Oct 28
Fed Holds Rates Steady, Cuts Rate-Setting Meetings to 7 in 2027
3 articles · Updated · The New York Times · Oct 28
Summary
Two Fed officials dissented in favor of a quarter-point hike, but the central bank left rates unchanged despite what it called elevated inflation.
Kevin Warsh said stable longer-run inflation expectations and no clear signs of an overheating economy gave policymakers room to wait for more data, even as credit conditions tightened somewhat.
Starting in 2027, the Fed will vote on rates at seven meetings instead of eight, with one meeting devoted to broad strategy; in 2028, it plans six rate-setting meetings and two strategy sessions.
Markets swung during Warsh’s news conference: the S&P 500 closed up 0.3%, the 2-year Treasury yield fell to 4.71%, and the 10-year touched 5.04% as investors reassessed the path of future hikes.
The decision came days before midterm elections and amid Trump’s attacks on the Fed and pressure on Governor Lisa Cook, though Warsh said politics played no role.