US Federal Reserve makes interest rate decision
Between the September and October FOMC meetings, US Treasury yields saw some degree of volatility, with the 10-year treasury yield hitting its highest point in over two decades before stabilizing just around five per cent. Despite the hold today, markets have begun to price in the likelihood of another interest rate hike before the end of the year.
“Economic activity is expanding at a strong pace. While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little,” the statement reads.
The decision was not unanimous. Governors Cook and Hammack voted for another 25 basis point interest rate hike.
