Fed holds interest rates steady even as inflation remains high

The U.S. central bank left borrowing costs unchanged this month after hiking rates in September for the first time in three years. The Federal Reserve held interest rates steady on Wednesday after hiking borrowing costs in September to clamp down on inflation. The central bank left the federal funds rate at a target range of 3.75% to 4%, keeping it unchanged after raising rates last month for the first time in three years. In a statement, the Fed said economic activity is growing at a "strong pace" while acknowledging that inflation remains elevated. "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% goal," Fed officials said.

Wall Street had forecast that the Fed would stand pat on rates. Investor reaction was muted, with the three major indexes remaining essentially flat after the Fed's announcement. The Fed's benchmark rate is its main weapon for stabilizing consumer prices, which have crept up in recent months. The latest rate decision comes less than a week before Americans head to the polls for the midterm elections, where affordability issues will be top of mind for voters. President Trump has long urged the Fed to ease borrowing costs. During a press conference after the rate decision, Fed Chairman Kevin