The Federal Reserve voted to leave rates as is at the 3-3/4 to 4% level, in its meeting yesterday, despite rising inflation, in order to avoid bursting financial bubbles on the eve of the midterm elections. In its press release, the Fed said that it needs to collect more information on inflation, although the latter remained elevated, in order to decide whether to increase rates next time. Speaking to journalists, Federal Reserve Chairman Kevin Warsh said that the decision is not electorally motivated. One Fed governor and one regional bank president voted against the decision.