The Federal Reserve left interest rates unchanged and reaffirmed its determination to curb inflation, but stopped short of giving a clear hint that it might raise rates at its December meeting.
In its post-meeting statement on Wednesday, policymakers said: "The accumulation of additional information will help the Committee determine the appropriate policy stance to ensure inflation returns to the Committee's 2 percent objective in a timely manner. The Committee is committed to achieving price stability."
The Federal Open Market Committee (FOMC) voted 10 to 2 to keep the target range for the benchmark federal funds rate at 3.75%-4%. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, favoring a 25 basis point increase.
After the rate decision was announced, the S&P 500 and U.S. Treasury yields held onto their gains.
Fed Chairman Kevin Warsh is scheduled to hold a press conference at 2:30 p.m. Washington time. He may be asked to explain the central bank's decision to stay put amid persistent price pressures and strong economic performance.
The September consumer price index (CPI) rose at its fastest pace in five months. This was mainly driven by energy price increases related to the Iran war, but the report also showed broad inflationary pressures across goods and services prices.
On Thursday, the U.S. will release the inflation gauge the Fed watches most closely, the September personal consumption expenditures (PCE) price index. Strong consumer spending and a flood of money flowing into artificial intelligence continue to drive economic growth. Economists expect Thursday's GDP data to show the U.S. economy grew at an annualized rate of about 3.2% in the third quarter.
Wednesday's rate statement repeated earlier language, saying economic activity has been expanding at a "strong pace" and household spending has been "resilient." It also reiterated that the unemployment rate has changed little and that inflation remains elevated.
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