As expected, the Federal Reserve Wednesday kept its benchmark rate unchanged at about 3.9% while acknowledging that inflation remains elevated, according to a report by the Associated Press.
In a statement released after its two-day policy meeting, the central bank’s Federal Open Market Committee said its policies, including a quarter-point rate hike at its previous meeting, need more time to show results.
“Inflation remains elevated,” the statement read. “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 percent goal.”
The Consumer Price Index rose 3.7% for the 12 months ending September 2026, according to the Bureau of Labor Statistics.
The Fed’s Oct. 29 statement also said economic activity is expanding at a strong pace and while uncertainty remains elevated due in part to geopolitical developments, domestic spending has been resilient.
“Productivity growth is strong, and capital investment is robust,” the statement said. “Job gains have kept pace with the workforce, and the unemployment rate has changed little.”
