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

According to QCP Capital's market observation report, the Federal Reserve maintained the policy rate at 3.75%–4.00% with a 10-2 vote at its October meeting. Fed Chair Walsh 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 feature interest rate votes, serving only as discussions on policy strategy. QCP observed that fewer decision points mean more economic data will accumulate between rate decisions, potentially increasing rate volatility and pushing up term premiums. The European Central Bank and the Bank of Japan also held rates steady, while markets still expect both central banks to potentially raise rates in December. The ECB stated that prior inflation data did not trigger second-round effects, while the BoJ announced that inflation has reached its 2% target. In the tech sector, shares of Alphabet, Amazon, Meta, and Intel declined following earnings releases, as markets expressed concerns over corporate profitability and future capital expenditures, growing increasingly cautious regarding the pace and returns of investments in AI infrastructure.