The Federal Reserve left its benchmark interest rate unchanged at 3.75% to 4% on Wednesday in a 10-2 split. This decision, the final major interest rate move before the midterm elections, follows a quarter-point hike in September which was the first increase in three years.
Federal Reserve officials reiterated their commitment to containing stubborn and rising inflation. Chairman Kevin M. Warsh signaled that the central bank's job is not yet done, citing a strong economy and the persistence of inflation.
While Chairman Warsh refused to offer explicit guidance on the future path of policy, he noted that an information-rich period before the December gathering will help officials determine next steps. Investors and traders widely expect the central bank to raise rates at the December meeting to combat inflation, although markets are pricing in less than a 10% chance that the FOMC follows the September hike with another immediate increase.
Chairman Warsh also announced on Wednesday that the Federal Reserve plans to eliminate some meetings devoted to setting interest rates.