The Fed holds rates at 3.75%-4%, 2 officials seek hike
The December meeting remains in play as U.S. inflation stays elevated and two FOMC members backed a 25-basis-point increase.
The Federal Reserve held its benchmark interest rate at 3.75%-4% at the FOMC meeting on Wednesday, Oct. 28, 2026, in line with market expectations. But the decision was not unanimous: Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack voted for a 25-basis-point increase. The U.S. central bank said inflation remains elevated and it needs additional economic data to make sure price growth returns to its 2% target. The Fed also described U.S. economic activity as still expanding strongly, a more positive assessment than at the September meeting. The split vote pointed to debate inside the central bank over whether further tightening is needed, while futures markets still see the possibility of a rate increase at the December meeting and additional hikes in 2027.