Fed holds rates steady as 2 dissenters push for hike, raising odds of December move

The Federal Reserve voted 10-2 to hold its benchmark interest rate at 3.75-4.00 percent annually at an FOMC meeting Wednesday (local time).

In a statement released immediately after the decision, the Fed said "economic activity is expanding at a strong pace" and that "domestic spending has remained resilient, even as uncertainty remains elevated, in part due to geopolitical developments." The central bank added that "productivity growth is strong and capital investment is solid," and that "job gains have kept pace with labor force growth while the unemployment rate has changed little."

The Fed also signaled it could raise rates to combat inflation, saying "inflation remains elevated" and that "additional information will help the committee determine the appropriate policy stance to return inflation to the committee's 2 percent objective in a timely manner." The Fed reiterated its commitment to price stability, stating "the committee will achieve price stability." Market attention is now turning to the possibility of a rate hike at the December FOMC meeting.

Two dissenting votes emerged at the meeting. Governors Lisa Cook and Beth Hammack both called for a 0.25 percentage point rate increase.