Fed holds rates and plans fewer votes
The Federal Reserve held the federal funds rate at 3.75% to 4% on Oct. 28, with Governor Lisa Cook and Cleveland Fed President Beth Hammack voting for a hike. It now plans fewer rate-setting votes over the next two years.
IllustrationThe story so far
On Oct. 28, the Federal Open Market Committee kept the federal funds rate at 3.75% to 4%, where it has been since a September quarter-point increase. The statement said inflation remains elevated and that more information would guide the next move. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of a quarter-point hike. The decision came under Chair Kevin Warsh less than a week before US midterm elections, and markets now expect a hike in December.
On Nov. 2, Chairman Kevin Warsh said the Fed will keep meeting eight times a year but hold fewer rate-setting votes over the next two years. In 2027, one of eight meetings will not include a rate vote or post-meeting statement. In 2028, two will not, leaving six chances to adjust rates. On Nov. 12, the Fed said its Oct. 26 and 27, 2027 meeting will be reserved for monetary policy strategy, reducing 2027 voting meetings to seven. The final 2027 meeting will be held in November instead of December.
Latest updates
3 updates · newest first- 12 NovNew development
Fed to skip rate vote at October 2027 meeting
The Federal Reserve said its October 26 and 27, 2027 meeting will be reserved for broad monetary policy strategy rather than an interest-rate vote, reducing 2027 voting meetings to seven. Chairman Kevin Warsh said the change is part of a plan to streamline communication and reserve time for longer-term deliberations. The final 2027 meeting will now be held in November instead of December.
CNBC ↗
- 2 NovOfficial statement
Fed to vote less often on rates over next two years
After holding rates at 3.75% to 4% on Oct. 28, Fed Chairman Kevin Warsh said the bank will keep meeting eight times a year but hold fewer rate-setting votes over the next two years. Next year, one of the eight meetings will not include a rate vote or post-meeting statement, and the following year two will not, leaving six scheduled chances to adjust rates. The change could make borrowers wait longer for costs to respond to economic conditions.
- 28 OctNew development
Fed holds rates at 3.75% to 4% as Cook and Hammack vote for a hike
The Federal Open Market Committee kept the federal funds rate at 3.75% to 4%, where it has been since a quarter-point increase in September. The statement said inflation remains elevated and that more information would guide the next move. Governor Lisa Cook and Cleveland Fed President Beth Hammack both dissented in favour of a quarter-point hike. The decision under Chair Kevin Warsh came less than a week before the US midterm elections, and markets now expect a hike in December.
U.S. News & World Report ↗