The US Federal Reserve's decision to hold interest rates steady at 3.75-4 percent on Wednesday has shifted market attention to its final policy meeting of 2026 in December, when traders expect another rate increase.
Financial markets had largely anticipated Wednesday's decision. Before the announcement, interest-rate futures indicated around a 90 percent probability of a hold, according to CME Group's FedWatch tool.
The decision also comes less than a week before the November 3 US midterm elections, which will determine whether President Donald Trump's Republican Party retains control of Congress. Trump has repeatedly called for interest rates to be slashed to around 1 percent, contrasting with the Fed's tightening stance amid persistent inflationary pressures.
The Federal Reserve's latest statement leaves the possibility of further interest rate increases open, although policymakers stopped short of committing to another hike in December.
"Inflation remains elevated," the Federal Open Market Committee said, emphasising the need for additional economic information before determining its 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 Committee will deliver price stability."