Why?

The Fed holds interest rates steady, signals rate hike later this year

By Rachel Siegel

The Federal Reserve on Wednesday held interest rates steady, even as inflation continues to weigh on American households.

The widely expected move leaves the Fed’s benchmark interest rate at a range between 3.75% and 4%.

In a statement, Fed leaders said uncertainty was still high, in part because of “geopolitical developments.”

Officials also said “the accumulation of more information will help” them determine next steps “to ensure a timely return of inflation” to normal levels. That new language indicates policymakers are still open to another hike down the road.

At the Fed’s September meeting, central bankers signaled another hike before the end of the year. That suggests another quarter-point increase could come when officials convene again in early December, depending on how the economy evolves.

Fed Chairman Kevin Warsh is set to take questions at a news conference at 2:30 pm ET.

With less than a week to go until the midterm elections, he could face questions about political pressure on the central bank. While Fed leaders routinely say they operate independently and are guided by economic data, Trump has repeatedly attacked the Fed for not doing enough to stimulate the economy.