Federal Reserve holds rates at 3.75%–4%
Two officials preferred an increase.
Carried forward on November 2, 2026. October 28 decision and ten-to-two vote retained.
On October 28, the Federal Reserve kept the federal funds target range at 3.75%–4%. The vote was ten to two. [1]
Two votes for an increase
Lisa Cook and Beth Hammack wanted a 0.25 percentage point increase. The statement describes inflation as still elevated and highlights the value of further data in determining the next steps. [1]
An anticipated pause
Reuters reports that the hold was widely expected after September’s increase. The agency notes that officials had signalled they were in no hurry to raise rates again. [2]
Effects to watch
According to Reuters, Kevin Warsh believes the higher rate is beginning to tighten credit conditions. The pause therefore does not settle future decisions, which will depend in part on the path of inflation. [2]
Perspectives compared
Sources and documents
- [1] Federal Reserve — FOMC statement ↗October 28, 2026
- [2] Reuters — Howard Schneider and Ann Saphir ↗October 28, 2026; page checked October 29