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Fed Holds Rates at 3.75%–4.00% as Two Officials Call for Hike

Grade Sbearish AI signal$NAS100$SPX500$XAU
The Federal Open Market Committee held the federal funds target range at 3.75%–4.00%, in line with market expectations. The decision passed 10-2. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, preferring a 25-basis-point rate increase. The statement said economic activity is expanding at a strong pace and inflation remains elevated. Fed Chair Warsh is scheduled to hold a press conference at 02:30 Beijing time. His remarks on inflation, growth and the policy path are the next stated focus for rate-sensitive markets, including NAS100, SPX500 and XAU.

Bullish strength: 42.5/100

  • Holding rates steady meets expectations, avoiding an additional tightening shock in the short term
  • Strong economic expansion supports the fundamentals of risk assets

Bearish strength: 57.5/100

  • Two officials advocate rate hikes, signaling hawkish policy divisions
  • Inflation remains high, putting pressure on expectations for future rate cuts

This is automated NewsSignals analysis of third-party reporting, not independent original reporting or investment advice. AI scores are not price predictions.

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Fed Holds Rates at 3.75%-4% as Two Officials Back 25bp Hike

The Federal Reserve held the federal funds target range at 3.75%-4% in a 10-2 decision. Fed Governor Lisa D. Cook and Cleveland Fed President Beth M. Hammack dissented, each preferring a 25-basis-point increase. The source said this was Cook's first dissent favoring a rate hike since becoming a Fed governor. The policy statement said economic activity is expanding at a strong pace, domestic spending remains resilient, productivity growth is strong, and capital investment is solid. It said employment growth has remained in line with labor-force growth and the unemployment rate has changed little. The Fed also said inflation remains elevated and that it will assess incoming information to determine the appropriate policy stance to return inflation to its 2% target in a timely manner. The split vote highlights differing views within the committee over whether rates should remain unchanged or rise further.

Warsh Says Fed Could Cut Rate Decisions to 6 by 2028

Federal Reserve Chair Warsh said the Fed will phase in changes to its meeting schedule beginning next year, with rate-decision meetings potentially reduced to six per year by 2028. Warsh said eight FOMC meetings per year remains an appropriate total, but one of the eight meetings in 2027 would become a strategic discussion without a rate vote. That number would rise to two non-voting strategic meetings in 2028, leaving six annual meetings for rate decisions. The Fed previously held rates unchanged in a 10-2 vote. Bloomberg reported that bond traders are currently pricing a roughly 90% probability of a December rate hike. Fewer rate-decision windows would place greater focus on inflation, employment data and policy messaging between voting meetings. The development is relevant to rate-sensitive markets, including SPX500, NAS100 and XAU.