In brief
On Oct. 28, the Fed announced a 10‑2 vote to keep the federal‑funds target range at 3.75‑4.00 percent, citing resilient domestic spending and solid productivity. Market‑watchers noted the decision could pave the way for another hike later in the year, while Korean stocks rose modestly on the news.
On Oct. 28, the U.S. Federal Reserve decided to keep its federal‑funds target range unchanged at 3.75‑4.00 percent, as reported by Xinhua and Yonhap. The vote, held after a recent quarter‑point hike in September, split 10‑2 among the 12 FOMC members, with 10 members voting to hold and two favoring a further increase. Xinhua highlighted that the committee cited strong economic activity, resilient domestic spending, and robust productivity growth in its statement, while noting inflation remained above its 2‑percent goal.
Kevin Warsh, the Fed’s chair, warned that inflation was still “too high,” according to Yonhap. He said energy‑related price climbs were a concern and that the committee was monitoring inflation to guide future policy.
"Energy and related prices have moved higher again in recent weeks, and our job is to ensure that relative price changes in some sectors do not broaden out across the economy," Warsh said during a press briefing.
The Fed also signaled that incoming data will dictate the timing of any future rate adjustments, a point echoed by both outlets. Analysts noted that the October pause sets a possible path for a year‑end rate hike, though no decision has been made.
In response, U.S. equity markets edged higher: the Dow rose 97.53 points, the S&P 500 gained 21.38 points, and the Nasdaq added 72.04 points, as reported by Xinhua. South Korean stocks opened slightly higher, with the KOSPI gaining 10.2 points on the Fed’s decision, according to Yonhap.
