Credit Ágricole: FOMC Recap - FJElite

The Fed held rates at 3.75–4.00% in October, as expected, following September’s 25bp hike. Two officials dissented, including Governor Lisa Cook, highlighting continued support for further tightening within the Committee. The statement added that more information would help determine the appropriate policy stance to return inflation to 2%, keeping further hikes on the table without committing to a specific path.

Chair Kevin Warsh struck a less hawkish tone than at Jackson Hole and the September meeting, but remained more hawkish than in July. He avoided offering forward guidance, instead emphasising the need to assess incoming data before the next decision. The meeting provided no reason to change the existing outlook for another 25bp hike in December, followed by a further increase in March.

The FOMC also announced a change to next year’s schedule: it will continue to hold eight meetings, but one will focus on broader monetary policy strategy rather than a rate decision, with no accompanying policy statement. Further details on the format are expected ahead of implementation.