Fed holds rates in a 10-2 split as December-hike odds climb toward 85% and the 10-year yield nears 5%
A day after the Oct. 28 hold at 3.75-4% — a 10-2 vote with Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting in favor of a hike — markets pushed December-hike odds toward 85% as the 10-year Treasury yield held near 5%. September core PCE at 3.1% year-on-year and headline inflation near 3.6% kept the tightening case alive, with Chair Kevin Warsh declining to commit to December.
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Coverage underscores a rare two-dissent split and a Fed still fixated on sticky inflation heading into the midterms.
CNN reported the Fed keeping rates unchanged while two officials dissented for a hike, an unusual public split that highlighted how much the central bank's focus has shifted to still-elevated inflation rather than labor-market softness.
Analysts read a hawkish hold with December-hike odds rising and the 10-year yield pressing toward 5%.
uCapital and Yahoo Finance reported the 10-year Treasury yield near 5.03% after the decision and Warsh saying politics played 'no role,' with CME pricing pushing December-hike odds toward 85% as the Fed flagged inflation that 'remains elevated.'