Fed holds rates as core inflation eases for a third month
The Federal Open Market Committee left its target range unchanged but removed language describing inflation as "elevated".
Daniel MoreauUS Equities AnalystPublished 14 Oct 2026, 20:30 CEST
Updated 14 Oct 2026, 21:10 CEST
2 min read
The Federal Reserve left its policy rate unchanged at 3.75% to 4.00% on Wednesday, in line with expectations.
The statement removed a reference to inflation remaining "elevated", which markets interpreted as an opening for a cut in December. Core PCE inflation has eased for three consecutive months, to 2.6% year on year.
The S&P 500 rose 0.6% and the yield on the two-year Treasury note fell eight basis points. Bank shares, including JPMorgan Chase, were little changed.
Chair Jerome Powell said the committee would "remain attentive to the risks on both sides of our mandate".
Disclosure
No position — covering the author and persons closely associated with them.
Other relationships: None.
This article is general information and the author's opinion. It is not investment advice and does not take into account your personal circumstances. Past performance is no guide to future returns. See our disclaimer.
Related
Apple: services margin carries the valuation
Daniel Moreau · 15 Oct 2026 · 6 min read
The case against owning the index at 22 times earnings
Sofia Brandt · 11 Oct 2026 · 4 min read
Microsoft: capital intensity is rising, and owners should price it in
Daniel Moreau · 10 Oct 2026 · 6 min read