The US Federal Reserve held its benchmark interest rate in a range of 3.75% to 4% on Wednesday, in a 10-2 vote that was its final policy decision before the country's midterm elections.
"Economic activity is expanding at a strong pace," the Fed said, adding that while uncertainty remained elevated partly because of geopolitical developments, domestic spending had been resilient, job gains had kept pace with the workforce and unemployment had changed little. It said more information would help it decide the right stance to return inflation to its 2% goal in a timely way.
US annual inflation rose to 3.7% in September from 3.4% in August, driven largely by energy prices. Last month the Fed raised rates for the first time since July 2023, a move criticised by President Donald Trump, who has said rates "should be 1% or less".
The Fed's next meeting is on December 8-9, when it will make its final rate decision of the year. According to sources, current forecasts point to a quarter-point increase.