Fed holds interest rates steady at 3.75% to 4% as two officials dissent
The Fed held its benchmark rate steady in a 10-2 vote.
The short version
- Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack voted for a hike.
- Inflation remains elevated and policymakers want more data.
- Check your business loan terms and variable borrowing costs as rates hold steady.
Why it matters to you. For your business, a steady benchmark rate means your current commercial loan payments and lines of credit will not change this month, giving you a chance to lock in terms before the central bank meets again.
The Federal Reserve held its benchmark interest rate steady in a 10-2 vote, keeping the range at 3.75% to 4% as inflation remained elevated. Two policymakers dissented, with Lisa Cook, a Federal Reserve Governor, and Beth Hammack, the president of the Federal Reserve Bank of Cleveland, voting to raise borrowing costs by a quarter point.
According to Connect CRE, the policy statement described inflation as elevated and emphasized the need for additional information before determining the next move. “The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee’s 2 percent goal,” the statement said.
Policymakers offered an upbeat assessment of the economy, saying activity expanded at a strong pace and domestic spending remained resilient. The unemployment rate changed little, while capital investment was robust.
