Fed holds rates steady at 3.75% to 4.00% in a 10-2 vote

The Federal Reserve maintained its target range for the federal funds interest rate at 3.75% to 4.00% on Wednesday in a 10-2 vote.

• Following a unanimous quarter-point increase at its September meeting, the Federal Open Market Committee left its target range unchanged at 3.75% to 4.00% on October 28 (1, 2).
• Cleveland Fed President Beth Hammack and Board of Governors member Lisa Cook voted against the hold, preferring a quarter-point increase (1).
• The Committee upgraded its wording on the pace of economic expansion to "strong," from "solid" in the September statement (1, 2, 3).
• A hold on rates was widely expected, with any indication of December's trajectory being the emphasized takeaway. In line with that shifted focus, CME FedWatch now implies a 78% likelihood of a December hike (4).
• In his subsequent press conference, Chairman Kevin Warsh noted that inflation "has been running above the Committee's objective for close to 6 years," and that "energy and related prices have moved higher again in recent weeks." The price of WTI crude oil, now trading just north of $100 per barrel, is up 78% year-to-date (5, 6).
• Market-wide reactions were relatively tame; the S&P 500 closed 0.14% higher than its pre-announcement price, the Nasdaq-100 closed 0.60% higher on the day, and the U.S. 10-year Treasury yield closed at 5.03% after hitting an intraday high of 5.051% (7, 8, 9).

Sources & Further Reading

1. "Federal Reserve issues FOMC statement." Federal Reserve. October 28, 2026.
2. "Federal Reserve issues FOMC statement." Federal Reserve. September 16, 2026.
3. "Implementation Note issued October 28, 2026." Federal Reserve. October 28, 2026.
4. "CME Group FedWatch." CME Group. October 28, 2026.
5. "Transcript of Chairman Warsh’s Press Conference Opening Statement." Federal Reserve. October 28, 2026
6. "WTI Crude Oil Quote." CNBC. Accessed October 28, 2026.
7. "SPDR S&P 500 ETF (SPY)." StockAnalysis.com. Accessed October 28, 2026.
8. "Invesco QQQ Trust (QQQ)." StockAnalysis.com. Accessed October 28, 2026.
9. "U.S. 10-Year Treasury Quote." CNBC. Accessed October 28, 2026.