Brief
Fed holds rates as markets steady, ASX futures point higher
The Fed left its benchmark rate unchanged, prompting modest gains on US indices and a rise in ASX futures, while some Fed officials dissented.
By Felo News Desk · Published
Wall Street was largely steady on Saturday after the Federal Reserve announced it would keep its benchmark interest rate within the 3.75%‑4.00% range, a move widely expected ahead of the U.S. mid‑term elections, SMH reported.
What happened
In a 10‑2 vote, the Federal Open Market Committee said it would maintain the current rate range and noted that inflation "remains elevated" while upgrading its assessment of the economy. The statement added that the Committee will continue to gather information to achieve its 2% inflation goal. The Fed chair, Kevin Warsh, is scheduled to speak at 5.30 am AEDT.
U.S. equities responded modestly: the S&P 500 rose 0.2%, the Dow Jones Industrial Average gained 149 points (0.3%), and the Nasdaq composite was largely unchanged. Australian futures at 5.05 am AEDT pointed to a 24‑point (0.3%) rise for the ASX at the open, after the index closed flat on Wednesday. The Australian dollar traded at US 0.7035.
What the reports add
The article notes that Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack each dissented, favoring a quarter‑percentage‑point hike. It also highlights that the Fed’s decision came with a reminder that further hikes could be considered depending on inflation data.
What was said
The Federal Open Market Committee said, "The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee’s 2 per cent goal," as quoted by SMH.
How it came about
Earlier in the month, Wall Street slipped as inflation data accelerated, and analysts had been watching the Fed’s minutes and upcoming jobs data for clues (see Felo’s coverage on 2026‑10‑14 and 2026‑10‑03). The current hold follows a period of market volatility linked to bond‑yield swings and AI‑sector moves, topics covered in Felo’s recent pieces on AI stocks and bond‑yield impacts.
Key facts
- The Fed kept its benchmark rate in the 3.75%‑4.00% range. (smh.com.au)
- The S&P 500 rose 0.2% and the Dow gained 149 points. (smh.com.au)
- ASX futures pointed to a 0.3% rise at the open. (smh.com.au)
- Fed Governors Lisa Cook and Beth Hammack dissented, preferring a rate hike. (smh.com.au)
- Fed Chair Kevin Warsh is set to speak at 5.30 am AEDT. (smh.com.au)
Sources
- [1] smh.com.au — originally reported as “Markets today: Fed keeps rates on hold, Wall Street steady; ASX set to rise”
