The Fed holds rates, but two officials wanted a hike
In short
- The Fed kept its key rate in the 3.75–4.00% range, as markets expected.
- The vote was 10–2: Lisa Cook and Beth Hammack wanted a 0.25-point hike.
- Warsh promised nothing about December. Markets still expect a hike on 9 December.
The Fed left rates unchanged, but the decision was not unanimous. Two voters wanted to raise rates now. The question of December stays open.
What happened
The US Federal Reserve kept its key rate in the 3.75–4.00% range. According to CNN and Yahoo Finance the decision was 10 votes to 2. Governor Lisa Cook and Cleveland Fed President Beth Hammack voted for a 0.25-percentage-point hike.
In its statement the Fed says inflation “remains elevated”. The wording moved from raising rates to maintaining them, and the next step will depend on “the accumulation of more information”.
At the press conference Chair Kevin Warsh gave no guidance on December. He described the coming weeks as “information rich” and said he feels good about the signposts in the economy. Warsh is generally against promising future rate moves in advance.
How markets reacted
According to investingLive, after the press conference markets price in about 0.22 points of tightening at the 9 December meeting – close to a certain 0.25-point hike. The dollar dipped at first, then recovered.
According to HawkValue data, an ounce of gold is £3,056.99, down 0.3% on the day. Bitcoin is £60,792, almost unchanged: it touched $81,100 around the decision, then gave the gain back. The S&P 500 is at 7,748.9 points (+0.34%) and the Nasdaq 100 at 29,805.7 (+0.52%).
What it means for you
The maths: the cheapest 1 oz gold bar at UK dealers is £3,103.91 at Chards. Every 1% move in gold is about £31 on that bar. Higher US rates usually weigh on gold, which is why December matters. Compare all UK dealer prices.
If you hold 0.1 BTC, it is worth £6,079.20 today. Crypto reacts most sharply to Fed surprises, so the next month may be choppier. The Bank of England watches the Fed too, so expectations for UK rates can shift with it. Live prices are on our crypto page.
Bottom line
Rates stay at 3.75–4.00%, but two votes for a hike show that the pressure is building. Warsh promised nothing, while markets already treat a 9 December hike as almost certain. Gold and Bitcoin barely moved.
Sources: CNN · Yahoo Finance · investingLive · FXStreet
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For information only. This is not investment advice.
