QCP: Fed Holds Rates Unchanged by 10-2 Vote, Reduces Rate Votes at Some Meetings

TechFlow, Oct. 30 — According to a market observation report published by QCP Capital, the Federal Reserve held its policy rate at 3.75%–4.00% by a 10-2 vote at its October meeting. Fed Chair Warsh declined to commit to a path of rate cuts or hikes for December and beyond, reiterating his opposition to forward guidance. The Fed also announced that one meeting in 2027 and two meetings in 2028 will not include rate votes and will be used solely for policy-strategy discussions. QCP believes fewer decision points mean more economic data will accumulate between rate decisions, potentially increasing rate volatility and pushing up the term premium.

The European Central Bank and the Bank of Japan also held rates unchanged, while markets still expect both central banks may hike in December. The ECB said previous inflation data had not produced second-round effects, while the Bank of Japan announced that inflation has reached its 2% target.

On the tech stock front, shares of Alphabet, Amazon, Meta, and Intel declined after earnings reports amid concerns about companies' profitability and future capex, and growing caution over the pace and returns of AI infrastructure investment.

Source: TechFlow