In brief
The Fed held its federal funds rate in a 10‑2 vote, keeping it at 3.75‑4.00 percent despite strong economic data and high inflation, as reported by Xinhua and Yonhap. Chair Kevin Warsh warned inflation was still too high and hinted at future hikes. Yonhap also noted a potential one‑percentage‑point gap with South Korea and a shift in the FOMC meeting calendar.
On Oct. 28 in Washington, the U.S. Federal Reserve decided to keep its benchmark federal funds rate in the unchanged 3.75‑4.00 percent range, less than a week before the 2026 midterm election day.
The decision was a 10‑2 vote among the 12‑member FOMC, with ten members supporting the hold and two favoring a hike, a split cited by both Xinhua and Yonhap.
Both outlets reported that the Fed highlighted robust economic activity—expanding output, resilient domestic spending, solid job gains—and continuing concern over elevated inflation.
In its policy statement, the Fed affirmed its commitment to maintaining ample reserves and pursuing price stability, noting the need for more data to guide its stance toward the 2 percent inflation goal.
Fed Chair Kevin Warsh said in a press briefing that inflation remained “too high.”
“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 told a press briefing. “It’s our responsibility to get inflation down.”
Yonhap added that the Fed will change its meeting schedule next year, holding rate‑setting votes at seven of eight meetings in 2027 to focus one session solely on broad monetary policy, a detail absent from other reports.
The South‑Korean outlet also noted that the interest‑rate gap between South Korea and the U.S. could remain up to one percentage point, a figure not referenced elsewhere.
