The Fed opts for caution ahead of the midterm elections and keeps interest rates unchanged

The U.S. Federal Reserve has decided to keep interest rates unchanged, a move anticipated by analysts ahead of the midterm elections. Despite economic growth and stable internal spending, inflation remains high at 3.7%. The labor market shows signs of cooling, with only 29,000 jobs added in September. Raising rates could curb inflation but might also hinder economic activity and provoke political backlash, particularly from Donald Trump. The Fed is expected to raise rates again before Christmas, as discussions continue on how much to increase them and how to communicate these decisions to the public. Warsh, the Fed chair, prefers less public discourse on rate changes, despite pressures from rising energy prices and geopolitical tensions.