Wire reporting: (AP, via Las Vegas Review-Journal)

The Federal Reserve left its benchmark interest rate unchanged on Wednesday after a two-day policy meeting, six days before U.S. midterm elections, according to Al Jazeera and Associated Press reports carried by several U.S. outlets^1,3,4.

Al Jazeera said the federal funds target remains 3.75% to 4% after a 10-2 vote, in line with market expectations, and that CME FedWatch had implied more than a 90% chance of a hold¹. AP copy described the key rate as about 3.9%^3,4.

The central bank's statement, as quoted by Al Jazeera, said economic activity is expanding at a strong pace and that more information would help it set policy for a timely return of inflation to 2%¹. AP accounts likewise said the Fed described inflation as remaining elevated and offered little guidance on the next move^2,3.

Al Jazeera said the most recent CPI reading showed annual inflation at 3.7% in September, up from 3.4% in August, with energy prices a large part of the monthly increase¹. AP copy said CPI rose 0.3% in both August and September on a monthly basis and that a PCE report due Thursday was forecast at 3.6% year over year^2,4.

AP reports said Chair Kevin Warsh's Fed raised the benchmark last month for the first time in three years, against President Donald Trump's calls for cuts^3,4. Al Jazeera said Trump had written that U.S. rates should be 1% or less after that hike¹.

Two officials voted to raise rates by a quarter point, AP copy said: Governor Lisa Cook and Cleveland Fed President Beth Hammack, with the account calling it Cook's first dissent since her 2022 appointment^3,4. Al Jazeera reported a 10-2 vote but did not name the dissenters¹.

Al Jazeera quoted Fed supervision official Michelle Bowman earlier this month saying she did not feel urgency for further action¹. AP copy said officials last month penciled in another hike this year and that futures markets had priced a December increase^3,4.

AP accounts said unemployment was 4.2% and that third-quarter GDP was expected near 3%, while also noting higher mortgage rates and AI-related and energy price pressures that rates may not quickly offset⁴. Al Jazeera said the next FOMC meeting is Dec. 8-9 and that current forecasts still point to a quarter-point increase¹.

AP copy said Warsh told a post-meeting news conference that politics played no role in the hold and that credit conditions had tightened for some businesses and households³. Al Jazeera said Thursday's PCE report and the Dec. 8-9 meeting would come next, and that current forecasts still point to a quarter-point increase¹.