Federal Reserve officials voted to hold interest rates steady at a 22-year high and revealed a divide over whether they should raise them once more this year, with most leaning toward another increase, the Wall Street Journal reported. “Really, what people are saying is, ‘Let’s see how the data come in,’” he said at a news conference Wednesday. “They want to be convinced. They want to be careful not to jump to a conclusion.” Fed officials also indicated they expect to keep rates higher for longer through 2024 than they anticipated earlier this year. Stock markets slid after the meeting, with the Dow Jones Industrial Average down 77 points, or 0.2%, and the S&P 500 decreasing 0.9%. Yields on the 2-year Treasury note rose to 5.118%, the highest level since 2006. Fed officials raised their benchmark federal-funds rate at their previous meeting in July to a range between 5.25% and 5.5% to combat inflation by slowing economic activity. They began lifting rates from near zero in March 2022. Fed Chair Jerome Powell said that officials didn’t need to decide yet whether to lift rates again after a historically rapid series of increases over the past 18 months and as they await evidence that a recent inflation slowdown can be sustained.
