The Federal Reserve held its benchmark interest rate at 3.75%–4.00%, citing strong economic activity and inflation that remains elevated. The decision passed 10–2, with Lisa Cook and Beth Hammack dissenting in favor of a 25-basis-point hike.
Why it matters
The dissents show that some policymakers see a case for tightening further even as the Fed leaves rates unchanged. The committee said it needs more data to determine the policy stance required to return inflation to its 2% target.
Market impact
The decision keeps rates steady, but the vote highlights disagreement over whether current policy is restrictive enough. Inflation data and the Fed’s assessment of economic activity will shape the debate over its next move.
Frequently asked questions
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What reasons did the Fed give for holding rates steady?
The Fed cited strong economic activity and still-elevated inflation in holding rates at 3.75%–4.00%.
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Who dissented from the Fed's rate decision?
Lisa Cook and Beth Hammack dissented, voting instead for a 25-basis-point hike.
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What was the vote on the rate decision?
The decision passed 10–2, with Cook and Hammack favoring a hike.
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What inflation target is the Fed aiming for?
The Fed said it is seeking to bring inflation back to its 2% target.
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What does the Fed say it needs before determining its policy stance?
The Fed said it needs more data to determine the policy stance required to return inflation to 2%.
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