Fed Holds Rates at 3.75%-4.00% and Plans Fewer Voting Meetings Ahead

The Federal Reserve kept benchmark interest rates unchanged at 3.75% to 4.00% in a 10-2 vote, with Fed Governor Lisa Cook and another official dissenting in favor of an immediate hike. Chairman Kevin Warsh indicated future steps will depend on incoming data as Q3 GDP tracks above 3% and first-half growth estimates rose to 2.4% from 1.8%. Warsh noted that existing policy measures are proving effective, prompting a retreat in the US dollar. Additionally, the Fed scheduled non-voting sessions for long-term deliberations, leaving seven voting meetings in 2027 and six in 2028.