Fed holds rates steady as inflation remains above target

The Federal Reserve maintained its target range for the federal funds rate at 3.75% to 4% at its most recent meeting, pausing after a quarter-point increase in September. The committee cited elevated inflation, which stood at 3.7% year over year in September, and geopolitical uncertainty as reasons to gather more information before taking further action.

Market participants and Fed Chair Kevin Warsh appear focused on a gradual approach to future rate adjustments to support the labor market and economic growth. Futures markets currently assign a 76% probability of a quarter-point hike at the final Federal Open Market Committee meeting scheduled for December 8-9, 2026.

Read the full story at finance.yahoo.com.