The Federal Reserve, on Wednesday, held interest rates steady in 3.75%-4.00% range. The US Fed opted to delay any changes to borrowing costs until after next week's US midterm elections and awaiting further data on the path of inflation.
The US Federal Reserve decision has come even as inflation has surged over the past few months amid crude oil price rally due to geopolitical uncertainty. Meanwhile, the Fed’s latest policy meeting concludes less than a week before the midterm elections, which have focused heavily on concerns about the cost of living and affordability.
The US Fed raised its key rate in September, for the first time in three years, from about 3.6% to 3.9%. Many experts perceived it as the first step toward a renewed effort to bring down inflation.
The US Fed announcement is likely to be followed by Kevin Warsh’s press conference at 12 am midnight. He will likely repeat the Fed's desire for a “timelier” return of inflation to the 2% target.
Some may view that as a sign the Fed will boost its key rate at its next meeting, in December, a move already widely expected by Wall Street investors.