Fed holds rates steady, signals possible December hike
6.9 Macro The Fed held rates at 3.75%-4% with 10-2 FOMC vote, citing high inflation and economic resilience. Markets await Fed Chair Warsh’s comments for future policy signals.
The U.S. Federal Reserve kept its benchmark interest rate steady in the 3.75% to 4.00% range on October 28, 2026, aligning with market expectations. The Federal Open Market Committee (FOMC) voted 10 in favor and 2 against, with two members advocating for an additional 25 basis point hike. The Fed acknowledged that inflation remains elevated, with annual consumer price growth at 3.7% in September—still above the 2% target. Despite persistent inflation, the central bank noted signs of economic resilience and improved its assessment of the economy. Markets responded with fluctuations in major currency pairs and downward pressure on gold, as investors awaited comments from Fed Chair Kevin Warsh for further policy guidance. The decision highlights the Fed’s balancing act between curbing inflation and supporting growth, keeping the possibility of a December rate hike open.
