The Federal Reserve left interest rates unchanged Wednesday, holding its benchmark rate at 3.75% to 4%, according to CNBC. The rate hasn't moved since the Fed raised it by a quarter point in September. Markets saw this coming, pricing in less than a 10% chance of a hike, and the S&P 500 held onto its gains after the announcement. The Fed's statement said inflation "remains elevated" and that officials will keep gathering data before deciding how to bring it back to their 2% target. The statement also upgraded the Fed's view of the economy, saying it's "expanding at a strong pace."

Not everyone agreed with waiting. Governor Lisa Cook and Cleveland Fed President Beth Hammack both dissented because they wanted another quarter-point increase. It was Cook's first dissent since she joined the Fed in 2022, and it came as President Trump renewed his effort to remove her over allegations about her home loan applications, with a hearing set for early November. The decision also lands less than a week before the November 3 midterms. The Fed treats its independence from politics as essential, but some observers had speculated that officials would avoid a hike this close to an election.

The economy is sending mixed signals. The Fed's preferred inflation gauge is expected to top 3% for September even without food and energy, and economists worry that rising prices have spread beyond the energy shock from the Iran war. Unemployment is still low, though, and the Atlanta Fed projects 3.4% growth for the third quarter, helped by steady consumer spending and AI investment. Futures markets point to a strong chance of a hike in December, but Chair Kevin Warsh declined to signal the Fed's next move. He did announce that one of the Fed's eight meetings in 2027 will focus only on long-term strategy, with no rate vote.