Fed Holds Rates Steady; Warsh Signals Caution as Markets Still Bet on a December Hike

Zhitong Finance APP has learned that the Federal Reserve announced on Wednesday that it will keep the benchmark interest rate unchanged, with the target range for the federal funds rate remaining at 3.75% to 4%, in line with widespread market expectations. This is the Fed's choice to pause after implementing its first rate hike in three years in September. Although inflation remains persistently high and the U.S. economy is performing strongly, Fed Chair Kevin Warsh did not explicitly signal another rate hike in December, but instead emphasized that policymakers need more economic data to judge the next step. At the same time, Warsh announced that starting next year the arrangement of monetary policy meetings will be adjusted, and the relevant remarks were interpreted by the market as a dovish signal, pushing short-term U.S. Treasury yields and the dollar lower.