US Federal Reserve holds rates at about 3.9 per cent despite elevated inflation

US inflation, September

3.7 % a year

US consumer prices rose 3.7 per cent in September from a year earlier, up from 2.4 per cent in February, just before the Iran war.

The Fed held its key rate at about 3.9 per cent on Wednesday, a month after its first hike in three years, saying inflation remains elevated and giving little hint of its next move. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, voting for a quarter-point hike.

And us?

The Bank of Canada also moved on Wednesday, raising its key rate a quarter point to 2.5 per cent, its first hike since July 2023.