Fed Holds Rates at 3.75%-4%, Two Members Vote for Hike
The Federal Reserve's FOMC voted 10-2 to keep interest rates unchanged, with two members dissenting in favor of a hike due to persistent inflation.
The Board of Governors of the Federal Reserve System issued a statement on October 28, 2026, announcing that the Federal Open Market Committee (FOMC) decided to maintain the target range for the federal funds rate at 3.75% to 4%. The decision was approved by a 10-2 vote, with Lisa D. Cook and Beth M. Hammack dissenting; they preferred to raise the target range by 25 basis points at this meeting.
The statement noted that economic activity is expanding at a strong pace. While uncertainty remains elevated due partly to geopolitical developments, domestic spending has been resilient. The committee highlighted that productivity growth is strong and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little.
However, inflation remains elevated. The Federal Reserve stated that the accumulation of more information will help determine the policy stance appropriate to ensure a timely return of inflation to the 2% goal. This indicates that while there is internal disagreement on immediate tightening, the committee is currently waiting for further data to assess whether supply-side strength can offset inflationary pressures.