WASHINGTON — The Federal Reserve kept its benchmark interest rate range at 3.75% to 4.00% on Wednesday, October 28, leaving in place the level set at its September meeting, the Federal Open Market Committee (FOMC) announced at 2 p.m. Eastern Time.

Source: Federal Reserve FOMC statement via The Edge

3.75%–4.00%Federal funds target range (unchanged)
10–2FOMC vote
4.00%ForexFactory forecast (upper end of range)
4.00%Previous decision (upper end of range)

The vote was 10 to 2. Lisa D. Cook and Beth M. Hammack voted against the decision, preferring to raise the range by a quarter of a percentage point, according to the FOMC statement as reported by The Edge. Chair Kevin Warsh joined the majority, Realtor.com reported.

Source: Realtor.com

“Inflation remains elevated,” the FOMC said in its statement, adding that more information will help the Committee determine the policy stance appropriate. The federal funds rate is the Fed's main policy rate — the target range for overnight lending between banks — and it influences borrowing costs across the US economy, from mortgages to credit cards.

The hold was widely expected. A Reuters poll of economists conducted October 16–20 found 94 of 100 expected the Fed to hold in October, and all 100 expected a further hike in December. The Fed raised rates in September for the first time in three years, and US mortgage rates averaged 7.32% last week, according to Freddie Mac figures cited by Realtor.com.

Why markets care: when the Fed holds rates but members dissent in favour of a hike, traders typically read it as a signal that borrowing costs may stay higher for longer, which can move bond yields, the dollar and mortgage rates. Chair Warsh's press conference was scheduled for 2:30 p.m. Eastern Time on Wednesday, and the Fed's next meeting is on December 8–9, 2026.