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2h ago

Fed Holds Interest Rate at 3.75%–4.00% After Two Dissenting Votes

The pause preserves the Fed’s option to raise rates if inflation remains elevated while it weighs strong jobs data against price pressures.

The Federal Reserve building, home to the U.S. central bank.
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Federal Reserve chairman Kevin Warsh during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, D.C., on July 29, 2026.
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Overview

  • On Wednesday, Oct. 28, the Federal Reserve voted to keep its policy range at 3.75%–4.00%, a decision that matched market expectations.
  • The vote was not unanimous: Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of an immediate rate increase.
  • The Fed said inflation remains above its 2% goal with the PCE gauge running at about 3.4% through August and officials now projecting PCE near 3.7% by year-end.
  • Officials cited a still-strong labor market and recent rises in energy prices as key factors that complicate the choice between tighter policy and protecting jobs.
  • The decision leaves voters and markets focused on whether the Fed will raise rates again at its December meeting and highlights ongoing political scrutiny of the central bank’s independence.