Fed leaves interest rates unchanged despite inflation in the US

The US Federal Reserve kept its benchmark interest rate at 3.75–4 percent in a 10–2 vote, as expected, less than a week before the midterm elections. The Fed said economic activity was expanding strongly, domestic spending remained resilient and unemployment had changed little, while inflation continued to rise. The Consumer Price Index reached 3.7 percent year over year in September, up from 3.4 percent in August, largely because of higher energy prices. Fed Vice Chair for Supervision Michelle Bowman had earlier supported a “wait and see” approach.