The Federal Reserve left its benchmark interest rate unchanged on Wednesday, its last policy meeting before the November midterm elections, according to The Guardian.
The federal funds rate stays in the 5.25% to 5.5% range, where it has held since September's quarter-point increase, the first since 2023. Fed Chair Kevin Warsh said the bank would monitor incoming data before deciding whether to act again this year.
Inflation accelerated to 3.7% in September from 3.4% in August. Higher oil prices after the Strait of Hormuz closure drove much of the increase. The consumer price index has stayed above 3% for most of 2026.
Fed Fund Futures imply traders see a strong chance of a December rate hike, FXStreet reported. Governor Christopher Waller said hikes need not come at consecutive meetings. He added they should arrive within an acceptable period of time.
Donald Trump criticised the September increase. He said US rates should be 1% or less. The economy ranks as the top voter concern in polls ahead of next week's congressional elections.
NYU Stern economist Nicholas Economides said the Fed would avoid radical action before the vote. He told The Guardian the economy would not have time to adjust otherwise.