Fed Holds Rates at 3.75%–4.00% in 10-2 Vote, With Two Dissenters Favoring a Hike

The Federal Reserve left its benchmark rate unchanged at 3.75% to 4.00% on Wednesday, pausing after September's quarter-point increase. The vote was 10-2, with Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting in favor of another hike.

The statement described growth as strong and said inflation remains elevated. Chair Kevin Warsh emphasized the committee's focus on bringing inflation down but declined to signal what the Fed will do in December, saying upcoming data will guide the decision.

Markets reacted calmly. The S&P 500 rose 0.28% to about 7,744, the Nasdaq gained 0.27% and the Dow added 0.19%. The 10-year Treasury yield rose about 5 basis points to roughly 5.04%, and the 30-year climbed to 5.36%, pressuring rate-sensitive sectors such as utilities and real estate.