WASHINGTON — The Federal Reserve opted to hold interest rates steady on Wednesday, October 28, 2026, keeping the benchmark federal funds rate in a target range of 3-3/4 to 4 percent. The decision, announced at 2:00 p.m. EDT following the conclusion of the Federal Open Market Committee’s latest policy meeting, reflects a central bank balancing robust economic expansion and resilient domestic spending against elevated inflation and lingering geopolitical uncertainties.
The policy directive was approved by a 10-to-2 vote of the Federal Open Market Committee (FOMC). While the majority of policymakers favored pausing adjustments to allow further economic data to accumulate, two members dissented, signaling internal debate over the appropriate pace and aggressiveness required to rein in price pressures.
In its official policy statement, the Committee reiterated its dual mandate of fostering maximum employment and promoting stable prices. To support these objectives, the central bank is continuing its ongoing policy of maintaining ample reserves within the banking system to ensure smooth financial market functioning and adequate liquidity.
According to the FOMC’s economic assessment, overall economic activity is currently expanding at a strong pace. Domestic spending has demonstrated notable resilience, weathering various economic crosscurrents. Furthermore, the Committee noted that productivity growth remains strong and capital investment across the broader economy is robust. Labor market conditions also remain stable, with job gains keeping pace with the growth of the workforce and the national unemployment rate showing little change over recent reporting cycles.
However, the path forward is complicated by persistent price pressures. The Federal Reserve explicitly noted that inflation remains elevated. Because of this ongoing challenge, the accumulation of more economic information will be critical in helping the Committee determine the precise policy stance appropriate to ensure a timely return of inflation to its long-term 2 percent goal. The FOMC emphasized its unwavering commitment to delivering price stability for American households and businesses.
The decision to keep the federal funds rate unchanged at 3-3/4 to 4 percent was not unanimous, highlighting a division among policymakers regarding the balance of risks facing the economy. Voting against the monetary policy action were Lisa D. Cook and Beth M. Hammack. Both dissenting members preferred to raise the target range for the federal funds rate by one-quarter of a percentage point at this meeting, indicating a desire for a tighter monetary policy stance to combat ongoing inflation risks.
The Federal Reserve released the implementation note detailing the technical operational aspects of the decision alongside the main statement. Media inquiries regarding the policy announcement and economic outlook can be directed to the Federal Reserve’s media relations office via email at [email protected] or by calling 202-452-2955.
