Fed Holds Rates at 3.75%–4% in October 2026 Decision, 10–2 Vote

The Federal Reserve held its benchmark interest rate steady on Wednesday, Oct. 28, keeping the federal funds target range at 3.75% to 4%, according to the Federal Open Market Committee's statement. The decision passed 10–2, with two officials voting for a quarter-point increase. It follows the Sept. 16 hike, the Fed's only rate change of 2026.

What did the Fed decide?

The Fed left rates unchanged at 3.75% to 4% in October 2026. "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 statement said.

Lisa D. Cook, a member of the Board of Governors, and Beth M. Hammack, president of the Cleveland Fed, voted against the action. Both "preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting," the statement said. Neel Kashkari and Lorie K. Logan, who dissented in favor of a hike in July, were among the 10 members voting for the hold, according to the Fed's list of 2026 committee members.

The Fed's implementation note kept the interest rate paid on reserve balances at 3.90% and the primary credit rate at 4.0%, effective Oct. 29. The standing overnight repo rate stays at 4.0% and the reverse repo offering rate at 3.75%.

What changed in the Fed statement?

Two wording changes stand out against the Sept. 16 statement:

Statement text	Sept. 16	Oct. 28
Decision	Raised range 0.25 point to 3.75%–4%	Held range at 3.75%–4%
Economic activity	"expanding at a solid pace"	"expanding at a strong pace"
Inflation guidance	"Today's policy action will support a timelier return to the Committee's 2 percent goal"	"The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation" to 2%
Vote	12–0	10–2

The lines that "inflation remains elevated" and that "the Committee will deliver price stability" were unchanged.

What did Warsh say at the press conference?

Chair Kevin Warsh said the committee's discussion "focused mainly on the price stability side of our remit," according to the Fed's preliminary transcript of his opening statement. He said inflation has run above the Fed's goal "for close to 6 years" and that "energy and related prices have moved higher again in recent weeks."

Since the September hike, financial and credit conditions "have tightened for some businesses and households," Warsh said. "While overall financial conditions are tighter, I'm unwilling and unable to call them tight." He said "the information we receive over the coming period will help us determine where we want policy to be."

Warsh also announced a schedule change. The FOMC will keep eight meetings a year, but "in 2027, one meeting will focus exclusively on broad monetary policy strategy, with neither a vote on the federal funds rate nor a policy statement anticipated," he said. He expects two strategy meetings and six policy meetings in 2028. He did not name which 2027 meeting will change; the Fed's calendar still lists eight 2027 dates. See our FOMC meeting schedule for 2026 and 2027.

How did markets react?

The S&P 500 closed at 7,743.98, up 21.38 points, or 0.28%, according to Yahoo Finance daily data. Treasury's par yield curve for Oct. 28 showed the 2-year yield at 4.67%, down from 4.70% on Oct. 27, and the 10-year at 5.05%, up from 4.99%. The 30-year rose to 5.37% from 5.30%. Our 10-year Treasury yield page tracks the curve.

When is the next Fed meeting?

The final 2026 meeting is Dec. 8–9, with the decision on Wednesday, Dec. 9, according to the Fed's calendar. It comes with new economic projections; our explainer on how the FOMC dot plot works shows how to read them. Minutes of this week's meeting are scheduled for Nov. 18.