Prof G Markets · Thursday, October 29, 2026
The Federal Reserve held interest rates steady, but Governor Lisa Cook and Cleveland Fed President Beth Hammock dissented in favor of a quarter-point hike. Morgan Stanley Chief US Economist Mike Gapen discussed the decision and noted that Chair Kevin Warsh did not provide a convincing explanation for staying on hold.
“The Fed decided to hold rates steady yesterday as expected, but not everyone was on board. Two officials, Governor Lisa Cook and Cleveland Fed President Beth Hammock, dissented in favor of a quarter-point hike.”
“Well, I think what jumped out for me and probably for others also is that I don't think we got a convincing explanation from the chair as to why the committee decided to stay on hold this month.”