The decision came just days before the November 3 midterm elections, with rising inflation a key issue for US voters.
The 12-member Federal Open Market Committee (FOMC) voted 10–2 to maintain the target range for the federal funds rate at 3.75% to 4.0%. After raising interest rates for the first time in three years last month, the Fed said inflation remained elevated. It said more data would help determine the appropriate policy stance to bring inflation back to its 2% target in a timely manner.
The Fed also said US economic activity was expanding at a “solid” pace. However, two FOMC members—Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack—voted against holding rates steady, preferring another quarter-point increase.
