by Emmitt Barry, Worthy News Washington D.C. Bureau Chief

(Worthy News) – The Federal Reserve voted Wednesday to keep its benchmark interest rate unchanged at 3.75% to 4%, citing persistent inflation despite strong economic growth, as Americans prepare to vote in next week’s midterm elections.

The Federal Open Market Committee voted 10-2 to maintain current rates following a quarter-point increase in September, the central bank’s first rate hike in more than three years.

Two officials, Federal Reserve Governor Lisa Cook and Cleveland Fed President Beth Hammack, dissented, favoring another quarter-point increase to combat inflation.

In its official statement, the Fed acknowledged that economic activity continues to expand at a strong pace, supported by resilient consumer spending, robust business investment, and a stable labor market.

However, policymakers warned that inflation remains elevated, with consumer prices rising 3.7% annually in September, well above the central bank’s 2% target.

Federal Reserve Chairman Kevin Warsh emphasized that restoring price stability remains a priority, while declining to signal whether another rate increase would come in December.

The decision comes amid continued pressure from President Donald Trump, who has advocated substantially lower interest rates to encourage economic growth and reduce borrowing costs.

With the November 3 midterm elections approaching, inflation, energy prices, and household affordability remain major concerns for American voters.

Economists increasingly anticipate another quarter-point rate increase in December if inflation fails to moderate, potentially keeping borrowing costs elevated for households and businesses heading into 2027.

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