The Federal Reserve left its benchmark interest rate unchanged on October 28, as markets widely expected. Two officials dissented, while Chair Kevin Warsh outlined changes to the FOMC’s future meeting schedule. At his post-meeting press conference, Warsh also discussed artificial intelligence as one factor supporting economic growth.
Fed waits for more inflation data
The Federal Open Market Committee said it would continue gathering information to assess what policy stance could bring inflation back to its 2% target in a timely manner. The statement did not signal whether the Fed would raise rates at its December meeting, instead emphasizing that policymakers would weigh incoming data before deciding.
With rates unchanged, attention turns to upcoming inflation and economic releases and how officials interpret them. Phil Camporeale, chief investment strategist at JPMorgan Wealth Management, said the Fed appeared inclined to wait for more information. Uncertainty stemming from geopolitical developments also complicates the rate outlook, he said.
One 2027 meeting will have no rate vote
Warsh said the FOMC will hold eight meetings in 2027, but one will be devoted to discussing policy strategy, with no interest-rate vote or post-meeting statement. In 2028, the committee plans to hold two strategy meetings, leaving six regular opportunities for rate adjustments. Emergency meetings are not included in that count.
The calendar affects when markets receive formal rate decisions and policy statements. With fewer scheduled votes, investors will still be watching economic data and officials’ comments, but the committee will have fewer regular meeting dates at which to adjust rates.
Cook and Hammack dissent
The decision drew two dissenting votes, from Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack. A dissent had not been unexpected, but Cook’s vote drew particular attention: Fed governors rarely dissent on rate decisions, and she had not done so since taking office in 2022. Both officials are expected to explain their votes later this week.
Seema Shah, chief global strategist at Principal Asset Management, said the two dissents point to support within the committee for tighter policy. She expects the Fed could raise rates in December and again in early 2027. That is her assessment of the likely policy path, not formal Fed guidance.
Warsh cites AI as one growth factor
At the press conference, Warsh described artificial intelligence as one of several factors contributing to the current economic expansion. He characterized growth momentum as strong but did not attribute it solely to AI. The Fed’s assessment of economic conditions remains tied to its inflation goal and policy decisions.
Thomas Simons, Jefferies’ chief U.S. economist, said Warsh’s communication should not be classified simply as dovish or hawkish. Markets may need time to adapt to his style, he said. How rate decisions respond to incoming data remains central to understanding the Fed’s stance.
Press conference format also changes
The press conference format has shifted alongside the policy calendar. The briefing after the September meeting lasted about half an hour, shorter than the usual 45 minutes; the October 28 session also ran for roughly 30 minutes. Reporters, who previously could sometimes ask two questions in succession, were limited to one question each.
Warsh also changed the seating order for reporters. Seats had previously been assigned based on factors including media size, then arranged alphabetically in September; this month, the order was reversed. The changes do not alter rate decisions, but they affect how reporters ask questions and how markets receive explanations of Fed policy.