US Fed Verdict: The US Federal Reserve held the benchmark inetrest rate steady in the range of 3.75-4% after a hike in its September monetary policy meeting. Chairman Kevin Warsh-led Federal Open Market Committee (FOMC) voted 10-2 to hit pause on the federal funds range in support of the US central bank's 'dual mandate'. In its statement, FOMC said inflation remains elevated, while job gains have kept pace with workforce.
It also addded that the US economic activity is expanding at a "strong" pace. The monetary policy vote in favor of keeping the benchmark rate unchanged was 10-2. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of a 25-basis-point rate hike.
-
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI -
"I Am A Material Man In A Material World': Quantum Advisors' Ajit Dayal On NDTV Profit Ignite
The FOMC said in its statement, ''The Federal Open Market Committee approved the following statement for release by a 10 - 2 vote: The Committee decided to maintain the target range for the federal funds rate at 3-3/4 to 4%, in support of the Federal Reserve's dual mandate. The Committee is continuing its policy of maintaining ample reserves in the banking system.''
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
''Economic activity is expanding at a strong pace. While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little,'' it added.
The central bank's statement reiterated that Inflation remains elevated. ''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% goal. The Committee will deliver price stability,'' said FOMC.
''Voting against the monetary policy action were Lisa D. Cook and Beth M. Hammack, who preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting,'' it concluded.
Wall Street traders have shifted their focus to the December meeting, where fed funds futures trading implies a roughly 85% likelihood of a rate hike, according to the CME FedWatch tool.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
