The US Federal Reserve kept its benchmark interest rate unchanged on Wednesday, 28 October 2026, holding the federal funds range at 3.75% to 4% as policymakers weighed elevated inflation against strong economic growth.
The Federal Open Market Committee approved the decision in a 10-2 vote. Governors Lisa Cook and Cleveland Fed President Beth Hammack dissented, preferring to raise the target range by a further 25 basis points at the meeting.
In its statement, the committee said: “Inflation remains elevated,” pledging that it “will deliver price stability”. It added that “the accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee’s 2 percent goal.”
The central bank said US economic activity is expanding at a strong pace, supported by resilient domestic spending, strong productivity growth and robust capital investment, despite elevated uncertainty linked partly to geopolitical developments. Job gains have kept pace with the workforce and the unemployment rate has changed little, it said.
The decision came at the Fed’s final meeting before the US midterm elections.
Source: Anadolu Agency / Reuters — https://www.anews.com.tr/economy/2026/10/28/fed-holds-benchmark-interest-rate-steady-at-375-4
