Fed Chair Kevin Warsh kept rates steady. Two officials wanted a hike.

Fed Chair Kevin Warsh held interest rates steady on Wednesday, Oct. 28. Two of the 12 voters wanted to raise them. “Inflation remains elevated,” the Fed said in its statement.

What the Fed did. The Fed sets a short-term interest rate for banks. It is called the federal funds rate. That rate helps set what people pay on loans and earn on savings. On Wednesday, the Fed kept it at 3.75% to 4%. It has been there since a hike in September, according to CNBC.

Who said no. Two officials voted against the plan. Governor Lisa Cook and Cleveland Fed President Beth Hammack both wanted a quarter-point hike, the Fed said. It was Cook’s first dissent since she joined the Fed in 2022, CNBC reports.

Why it matters. The Fed wants prices to rise about 2% a year. Inflation has been above that goal for more than five years, according to CNBC. The Fed said it will wait for “more information” before it acts again.

A new kind of meeting. Warsh also changed the Fed’s calendar. “In 2027, one meeting will focus exclusively on broad monetary policy strategy, with neither a vote on the federal funds rate nor a policy statement anticipated,” he said at his news conference. The other meetings will still set rates.

The economy. The Fed said the economy is “expanding at a strong pace.” It said job gains have kept pace with the workforce. The jobless rate has changed little, the statement says.

Looking ahead. Warsh said he expects two strategy meetings and six rate meetings in 2028, according to CNBC. He did not say what the Fed will do next, CNBC reports.

This is news, not financial advice.