The Globe and Mail reports in its Thursday, Oct. 29, edition that The Federal Reserve maintained its key rate at 3.9 per cent despite high inflation, with chair Kevin Warsh indicating that their policies are beginning to have an effect. An Associated Press dispatch to The Globe reports that the Fed said, "Inflation remains elevated." Holding off on an increase will allow "the accumulation of more information" that will help determine what policy the Fed should pursue "to ensure a timely return of inflation" to the central bank's 2-per-cent inflation target, the Fed said. The Fed is tasked by Congress to combat inflation, and it does so by lifting rates to slow borrowing and spending, and reduce price increases. Glenmede's Michael Reynolds believes the Fed will likely hike its key rate by a quarter-point at its next meeting in December. Wall Street investors now see the odds of an increase then at nearly 85 per cent. He says, "It's likely going to take one more [hike] from the Fed to get interest rates into restrictive territory," where they can slow inflation. The Fed's decision comes just six days before a midterm election that has focused heavily on concerns around the cost of living and affordability.