The Federal Reserve is keeping rates the same after a 0.25 percent hike earlier this fall.
Rates will now stay between 3.75 to 4 percent. The vote was 10-2, as both Beth Hammack and Lisa Cook wanted the “target range” to increase another 0.25 percent, according to a press release.
“The Committee decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent, in support of the Federal Reserve's dual mandate. The Committee is continuing its policy of maintaining ample reserves in the banking system,” the Federal Open Market Committee stated.
BREAKING: The Federal Reserve holds interest rates steady at 3.75% to 4%, just six days before the midterm elections, as inflation continues to weigh on the U.S. economy. Fed policymakers voted 10-2 to keep rates unchanged after raising them by 25 basis points in September, the central bank’s first rate hike since July 2023. Rising energy costs, tariffs, and strong consumer spending have helped keep prices elevated, while the Fed’s pause leaves borrowing costs high for American households and businesses. | @AmericaRpts
— Fox News (@FoxNews) October 28, 2026
“Economic activity is expanding at a strong pace. While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little,” the statement continued.
However, the FOMC said that “inflation remains elevated.”
“The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee's 2 percent goal. The Committee will deliver price stability,” the statement continued.
President Donald Trump has repeatedly called for interest rates to be cut by the Federal Reserve, including saying in the past that Federal Reserve Chair Kevin Warsh is dealing with an overtly political board.