Federal Reserve Holds Rates at 3.75-4 Percent as Two Officials Dissent The Federal Reserve kept its benchmark interest rate unchanged at 3.75 to 4 percent, with two FOMC members voting to raise rates by 25 basis points. Markets expect a rate hike in December. The Federal Reserve announced on Wednesday that the Federal Open Market Committee voted 10-2 to maintain the target range for the federal funds rate at 3.75 to 4 percent, matching market expectations. The decision keeps the policy rate unchanged in support of the Federal Reserve's dual mandate, the central bank said in its statement. The FOMC said it is continuing its policy of maintaining ample reserves in the banking system. Economic activity is expanding at a strong pace, according to the statement. While uncertainty remains elevated owing in part to geopolitical developments, domestic spending has been resilient.Fed Maintains Interest Rates Amidst Inflation ConcernsProductivity growth is strong and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little, the Fed said. The central bank warned, however, 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 percent goal.The Committee said it will deliver price stability. FOMC members Lisa Cook and Beth Hammack voted against the monetary policy action and the statement. Both preferred to raise the target range for the federal funds rate by 25 basis points at Wednesday's meeting. Chris Zaccarelli, Chief Investment Officer of Northlight Asset Management, said the Fed left plenty of clues that it was planning to raise rates in December.As always, a lot can change in the data between now and then, but if it were not so close to the midterm elections, they probably would have raised rates today, and now it is unlikely that anything will stop them from raising rates at the next meeting, he said. Next year, the picture is less clear.Markets Eye Future Rate Hikes Amid Economic UncertaintyThe futures are predicting two more rate hikes, and that makes sense if everything stays the same, but as we have learned over the past couple of years, things rarely do, Zaccarelli said, citing tariffs and the Iran war as examples. Zaccarelli expects the economy to suffer as rates move higher and the AI buildout is impacted.If there is a growth slowdown or recession in the next 12 months, then of course the Fed will react and we will see lower interest rates by the end of next year, he said. But if the economy continues to be resilient despite all of the macroeconomic headwinds, then the Fed may end up raising even more than the two times that are currently priced in, according to Zaccarelli.Ernest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations. Ernest began working in market news in 2007, establishing the broadcast division of CEP News in Montreal, Canada, where he developed the fastest web-based audio news service and produced economic news videos in partnership with MSN and the TMX.He has a Bachelor's degree Specialization in Journalism from Concordia University. The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.