Fed holds rates at 3.75%-4% as inflation stays stuck at 3.7%

The Federal Reserve left its benchmark interest rate unchanged at 3.75% to 4% on Wednesday, even as inflation remained above target and consumer prices rose 3.7% in September from a year earlier. The decision followed a rate increase in September and kept borrowing costs steady for now ahead of the Fed's next meeting on Dec. 8-9. The vote was not unanimous: two policymakers favored lifting rates by a quarter point to 4% to 4.25%. The Fed said it wanted more data before making another move, while stressing that inflation is still elevated. Higher rates have already pushed mortgage costs higher and weighed on housing, while investors increasingly see December as the next chance for another increase.