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Business & Finance · October 28, 2026

Fed holds rates steady days before the midterms, even as inflation runs hot

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The Federal Reserve voted 10-2 on Wednesday to maintain the federal funds rate at a target range of 3.75% to 4%. The decision follows a quarter-point increase in September, which marked the first hike in three years. While the Federal Open Market Committee acknowledged that inflation remains elevated and above its 2% target, it opted to wait for more data before taking further action. The decision comes less than a week before the U.S. midterm elections and amid President Trump's long-standing preference for lower borrowing costs. Fed Chair Kevin Warsh also announced structural changes to the Fed's meeting schedule starting in 2027 to allow for more data collection between votes.

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Reported by multiple outlets

  • The Federal Reserve held the benchmark interest rate steady at 3.75% to 4%.
  • The FOMC vote was 10-2 in favor of the hold.
  • Inflation was described by the Fed as remaining elevated.
  • The Fed's target goal for inflation is 2%.
  • The previous rate hike occurred in September.
  • Kevin Warsh is the Federal Reserve Chair.

Reported by only some outlets

  • Lisa Cook and Beth Hammack were the two dissenting voters who preferred a quarter-point hike.
  • The Fed updated its statement language to mention that the 'accumulation of more information' will determine future policy.
  • President Trump has previously urged the Fed to ease borrowing costs.
  • A plan was announced to reduce the number of interest rate votes starting in 2027.
  • Market indexes remained essentially flat following the announcement.
  • The September hike was the first since 2023.

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