US Federal Reserve keeps rates steady at 3.75‑4% ahead of elections

The US Federal Reserve has left its target range for the federal funds rate unchanged at 3.75 % to 4 %.

The decision was taken a week before the US mid‑term elections and follows a rate rise in September – the first increase in three years. Fed Chair Kevin Warsh said the monetary policy actions taken in September are beginning to work.

In its statement the Fed said inflation remains high, but the economy is still resilient and credit conditions are tightening. The board therefore wants more data before deciding on any further moves.

Ten of the twelve Federal Open Market Committee members voted to keep rates steady; Governor Lisa Cook and Cleveland Fed President Beth Hammack favoured raising the range to 4 %‑4.25 %.

The next Fed meeting is scheduled for 8‑9 December, when the committee will review additional economic data to determine the appropriate policy stance.

Source: BBC News. Photo: Mark Stebnicki / Pexels.