Two voting members of the FOMC dissented in favor of raising rates. Some context for why that stance might make sense, from Jason Furman’s EconVitals Taylor rule utility.
Source: EconVitals, accessed 10/28/2026.
The implication that current rates are too low vis a vis the Taylor rule is general; here’s the Atlanta Fed’s Taylor rule app as of today:
Source: Atlanta Fed, accessed 10/28/2026.
Headline from The Hill says it all:
“Federal Reserve holds interest rates steady in face of persistent inflation”
https://thehill.com/business/6174753-fed-interest-rates-decision-inflation/
The Fed had passed on hiking rates today for a political reason. That reason is to avoid giving the impression of engaging in politics – to one guy who has bullied the Fed.
A 25 basis-point difference for 6 weeks isn’t going to matter much to growth nor to inflation. However, in the period since Nixon, Fed watchers have been able to look at the record of Fed rate adjustments and see that election timing didn’t matter. Heck, ask the ghost of President Bush I.
As of today there is an obvious case of the Fed timing a rate decision to accommodate politics. That’s who we are now.
Nixonian indeed. But hey smiling Kevin DOW36000 Hassett assures us that inflation will fall very quickly.