This report does not constitute a rating action. The Federal Open Market Committee (FOMC) held the federal funds rate steady at 3.75%-4.00% in a 10-2 vote Oct. 28, whereas S&P Global Ratings had expected a hike of 25 basis points (bps). The wording in the committee's statement published after the meeting, however, leaned hawkish. It said that activity is now expanding at a"strong"pace, while inflation remains elevated and the committee awaits"the accumulation of more information."Governor Lisa D. Cook, in her first dissent, and Cleveland Federal Reserve President Beth M. Hammack both preferred a 25 bps hike; no one argued for easing. We view the vote as revealing the FOMC's preference for a gradual approach to tightening.
