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The Federal Open Market Committee voted 10-2 to hold its benchmark federal funds rate in a range of 3.75% to 4%. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, preferring to raise rates by a quarter percentage point. The decision to hold rates comes less than a week before the November midterm elections. Amid widespread discontent over the economy, Democrats are favored to win a majority in the House of Representatives and have a polling edge in several key races for the Senate. The S&P; 500 and Treasury yields remained higher following the decision. Fed chairman Kevin Warsh is scheduled to hold a press conference in Washington. He is likely to be pressed to explain the Fed's decision not to raise rates despite price pressures and signs of a strong economy. Read more: Fed's Kevin Warsh says US economy not running too hot from AI boom The consumer price index rose in September at its fastest pace in five months. That was driven largely by higher energy prices connected to the Iran war, but the report also showed broad-based inflation across goods and services. Policymakers will get fresh data Thursday when the Bureau of Economic Analysis releases the September reading for the Fed's preferred inflation gauge, the personal consumption expenditures price index. Read more: US stocks today: US stocks end higher as Fed holds rates; focus turns to earnings Strong consumer spending and a crush of investment into AI also continue to boost growth. Economists expect figures also due out Thursday will show the US economy grew at a robust annualised pace of about 3.2% in the third quarter. The post-meeting statement repeated its prior descriptions of economic activity as expanding "at a strong pace" and domestic spending as "resilient." It also reiterated that the unemployment a rate had changed little and inflation stayed elevated. After the Fed's decision to hike interest rates in September, bets for another increase this month climbed above 70%, according to pricing in federal funds futures. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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