The Federal Reserve (Fed) kept interest rates unchanged on October 28, 2026, maintaining the federal funds rate target range at 3.75% to 4%. The Federal Open Market Committee (FOMC) voted 10-2 in favor of holding rates steady, with two members supporting an increase.
Why it matters: The Fed's benchmark interest rate influences borrowing costs for consumers and businesses. Following September's rate increase, the decision to hold rates steady provides no immediate relief from higher borrowing costs. Two officials favored another hike as inflation remained at 3.7% over the 12 months ending in September, according to the Bureau of Labor Statistics (BLS).
The Federal Reserve's next meeting is scheduled for December 8-9, 2026, when officials will also release updated economic projections. The committee emphasized that additional economic data will help determine the appropriate monetary policy stance to bring inflation back to its 2% target in a timely manner. The Fed also reaffirmed its commitment to achieving price stability.
Sources: Federal Reserve, October 28, 2026 statement, implementation note, and Bureau of Labor Statistics. Accessed on October 28, 2026.
