The Federal Reserve has held interest rates steady as policymakers await more economic data before considering further tightening. While officials pointed to resilient consumer spending, strong investment and solid productivity, inflation remains elevated, with tariffs, energy prices and AI-related investment contributing to price pressures.
The Fed’s latest decision passed with a 10 to 2 vote, with Lisa Cook and Beth Hammack dissenting in favor of another rate hike. Following the announcement, the U.S. dollar weakened while Treasury yields remained relatively steady, as currency markets assessed the outlook for interest rates and the narrowing differences in global monetary policy.
Meanwhile, September’s PCE inflation rose 3.6% year over year, reaching its highest level since May. Personal income increased 0.2%, below expectations, while preliminary third-quarter GDP figures showed stronger than expected economic growth. Fintech TV’s market update, brought to you by Corpay, examines the latest developments in Fed policy, currency markets and the U.S. economic outlook.