US Federal Reserve keeps interest rates on hold, waits to see if inflation accelerates - 2 people oppose raising interest rates

[Washington Current Affairs] On the 28th, the Federal Reserve Board (FRB) decided at the Federal Open Market Committee (FOMC) to maintain the policy interest rate at 3.75% to 4.00% annually. The decision was left unchanged for the first time in two meetings. Although inflation has accelerated due to soaring oil prices due to the increasingly chaotic conflict between the United States and Iran, the Bank has determined that there is no urgency to raise interest rates continuously. Ahead of the midterm elections on November 3, the government has taken a wait-and-see attitude for the time being.

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The decision was overwhelmingly approved. Two Federal Reserve Board members, including John Cook, who see persistent inflationary pressures as a problem, advocated raising interest rates and voted against keeping interest rates unchanged.

"Inflation is too high," Chairman Warsh said at a press conference after the FOMC meeting. "It is our responsibility to control inflation," he stressed, hinting at further interest rate hikes in the future.

"Economic activity is expanding at a strong pace," the statement said. He justified leaving the Bank unchanged by saying that by obtaining more information, including price indicators, ``we will be able to decide on an appropriate monetary policy stance.'' U.S. crude oil prices are hovering above $100 per barrel, and he expressed caution, saying, "Uncertainty remains high."