US Federal Reserve leaves interest rates unchanged

After raising interest rates for the first time in three years last month, the Federal Reserve on Wednesday announced its widely expected decision to leave interest rates unchanged following its latest meeting.

The Fed said it decided to maintain the target range for the federal funds rate at 3.75 to 4.0% in support of its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run.

Unlike last month’s unanimous decision to raise rates by a quarter point, there was some division among Fed officials at the latest meeting.

The central bank revealed that Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack voted against leaving rates unchanged, preferring to raise rates by another quarter point.

The Fed’s accompanying statement acknowledged inflation remains elevated but said the accumulation of more information will help determine the policy stance appropriate to ensure a timely return of inflation to the 2% goal. The Fed declared it “will deliver price stability.”

On Thursday, the Commerce Department is scheduled to release a report that includes readings on consumer price inflation said to be preferred by the Fed.

The Fed also noted that domestic spending has been resilient despite elevated uncertainty due in part to geopolitical developments.

“Productivity growth is strong, and capital investment is robust,” the Fed said, repeating comments from last month’s statement. “Job gains have kept pace with the workforce, and the unemployment rate has changed little.”

The central bank’s next monetary policy meeting is scheduled for December 8-9, with CME Group’s FedWatch Tool currently indicating a 99.4% chance the Fed will raise rates by a quarter point.