QCP: Fed Keeps Rates Unchanged 10-to-2, Cuts Voting for Some Meetings

on October 30, according to a market observation report from QCP Capital, the Federal Reserve kept its policy rate steady at 3.75%–4.00% with a 10-to-2 vote at its October meeting. Fed Chair Wash declined to commit to a trajectory for rate cuts or hikes in 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 feature interest rate votes and will be dedicated solely to policy strategy discussions. QCP observed that fewer decision meetings will allow more economic data to accumulate between rate decisions, potentially amplifying interest rate volatility and driving up the term premium.

The European Central Bank and the Bank of Japan also held rates steady, while markets continue to expect potential rate hikes from both institutions in December. The ECB stated that recent inflation data did not spark second-round effects, whereas the Bank of Japan declared that inflation has met its 2% target.

Among tech stocks, shares of Alphabet, Amazon, Meta, and Intel declined following earnings releases, as concerns mounted over corporate profitability and future capital expenditures. Investors are growing more cautious about the pacing and returns of investments in AI infrastructure.