Federal Reserve holds benchmark rate at 3.75% to 4%; two members favored an increase

The Federal Reserve's Federal Open Market Committee voted to keep the target range for the federal funds rate at 3-3/4 to 4 percent, according to a statement released October 28, 2026. The committee said the decision supports the Federal Reserve's dual mandate.

The decision passed by a 10-2 vote. Lisa D. Cook and Beth M. Hammack voted against the action, the Federal Reserve said, preferring to raise the target range by 1/4 percentage point at this meeting.

In its statement, the committee said economic activity is expanding at a strong pace. It said uncertainty remains elevated, owing in part to geopolitical developments, but that domestic spending has been resilient. According to the statement, productivity growth is strong and capital investment is robust. The committee said job gains have kept pace with the workforce and the unemployment rate has changed little.

The committee said inflation remains elevated. It said the accumulation of more information will help it determine the policy stance appropriate to ensure a timely return of inflation to its 2 percent goal, and stated that it will deliver price stability.

The Federal Reserve also said the committee is continuing its policy of maintaining ample reserves in the banking system.

Source: Federal Reserve (monetary policy).

Originally published by True News: https://truenews.bagleyenterprises.net/stories/546