Facts
- The Federal Reserve left its benchmark interest rates unchanged on Wednesday, October 28, 2026, keeping the federal funds target range at 3.75% to 4%.
- The Federal Open Market Committee approved the decision 10–2.
- Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented. Both preferred raising the range by a quarter of a percentage point.
- The committee’s statement described economic activity as expanding at a strong pace, citing resilient domestic spending, strong productivity growth and robust business investment.
- The statement said job gains have kept pace with growth in the workforce and the unemployment rate has changed little.
- The committee said inflation remains elevated and that uncertainty is high, partly because of geopolitical developments.
- The Fed said it is watching incoming data to set a policy path that returns inflation to its 2% goal in a timely way.
- At his press conference, Chair Kevin Warsh said third-quarter GDP growth is likely above 3%, led by consumer spending, and that first-half growth was revised up to 2.4% from 1.8%.
- Warsh noted that inflation has been above the Fed’s objective for nearly six years and that energy-related prices have risen again in recent weeks.
- The decision comes six days before the November 3 midterm elections.
Quotes
The Federal Open Market Committee, describing the economy in its October 28 policy statement: “Economic activity is expanding at a strong pace.”
The Federal Open Market Committee, on prices, in the same statement: “Inflation remains elevated.”
Source Read the Federal Reserve’s full statement here.
Image Marriner S. Eccles Federal Reserve Board Building by AgnosticPreachersKid, licensed under CC BY-SA 3.0.