Fed holds rates at 3.75%-4%, with two officials seeking a hike
The Federal Reserve left its benchmark interest-rate range at 3.75% to 4% on Wednesday. The decision leaves policy unchanged, while the central bank's statement makes clear that inflation remains a concern.
The Fed's statement records a 10-2 vote. Lisa Cook and Beth Hammack opposed the decision because they preferred a quarter-percentage-point increase.
The statement describes economic activity as expanding at a strong pace, domestic spending as resilient and inflation as elevated. It says more information will help officials determine the policy stance needed to return inflation to the Fed's 2% goal.
The distinction is important: holding rates at this meeting is not the same as declaring the inflation fight over. The statement does not commit the committee to either a hike or a hold at its next meeting. Today's decision alone does not settle what comes next.
For the setup heading into the announcement, see this morning's Toast & Tickers.
At his news conference after the decision, Fed Chair Kevin Warsh announced a change in the committee's meeting format. One of the eight FOMC meetings in 2027 will focus exclusively on broad monetary policy strategy, with neither an interest-rate vote nor a policy statement anticipated. Warsh said he expects two strategy meetings and six rate-setting meetings in 2028. The plan changes the purpose of some scheduled meetings, rather than reducing the total number of gatherings.
The Fed's published calendar still lists eight meetings for 2027 and does not yet identify the strategy meeting. The new format does not change Wednesday's rate decision.
