Fed Holds Rates Steady but Keeps a December Hike in Play

The US central bank kept its benchmark rate unchanged on Wednesday, exactly as markets had priced in. The federal funds range stays at 3.75% to 4.0%. Officials made clear they still intend to deal with inflation that sits well above the 2% goal, so the pause does not signal an end to tightening.

Why a December Rate Hike Looks Likely

September inflation readings were troubling, yet several policymakers spoke this month about being comfortable with a slower pace of tightening. Traders took that as a sign that no move would come now but that one is coming soon. Markets have fully priced in an increase at the next meeting in early December.

What to Watch From Chair Warsh

Fed Chair Kevin Warsh holds his post-meeting press conference at 2:30 p.m. ET, where investors will look for any extra detail on the pace and timing of future increases.