The Federal Reserve left its policy rate at 3.75%-4.00% in a 10-2 vote, after
raising rates last month. Dissenters included Fed Governor COOK and the
Cleveland Fed president, who both preferred a 25bp increase. The Fed said the
pause buys time to assess whether further tightening is needed to prevent rising
energy costs and AI-driven investment from feeding into broader inflation. The
rate-setting committee did not alter market expectations that a 25bp hike
remains possible at the December meeting and said it will use incoming data to
judge the appropriate stance to ensure inflation returns to its 2% goal.
