# Fed Holds Rates at 3.75%–4% as Two Officials Favor an Increase

The October 28 decision leaves borrowing-rate policy unchanged while the central bank describes strong growth and elevated inflation.

By Will Langan | 24X7 News
Published: 2026-10-28T18:57:55.570Z
Updated: 2026-10-28T18:57:55.570Z
Section: Money
Format: News
Canonical: https://24x7news.us/articles/federal-reserve-rate-decision-october-28-2026

The Federal Reserve left its benchmark interest-rate target at 3.75%–4% on October 28, with two policymakers favoring a quarter-point increase instead.

The Federal Open Market Committee approved the decision by a 10–2 vote in a statement released at 2 p.m. Eastern. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of raising the target range.

The committee described economic activity as expanding strongly, supported by resilient domestic spending, robust capital investment and strong productivity growth. It said job gains had kept pace with the workforce and unemployment had changed little.

Inflation remains elevated, the statement said. Policymakers indicated that additional information would help determine the stance needed to return inflation to the Fed’s 2% goal, while acknowledging continued uncertainty partly tied to geopolitical developments.

Reuters independently reported the unchanged decision shortly after the announcement. The statement itself makes no commitment to a rate move at a particular future meeting.

A separate implementation notice sets out how the decision will operate. The Board of Governors maintained the interest rate paid on bank reserve balances at 3.90%, effective October 29, and the primary credit rate at 4%.

The Fed also directed its New York trading desk to maintain the target range through open-market operations. Standing overnight repurchase operations remain at 4%, while overnight reverse repurchase operations carry a 3.75% offering rate.

Those implementation settings support the announced monetary-policy stance. They are separate from the interest rates individual banks and other lenders set for consumer and business customers.

Sources
Federal Reserve FOMC statement: https://www.federalreserve.gov/newsevents/pressreleases/monetary20261028a.htm
Federal Reserve implementation notice: https://www.federalreserve.gov/newsevents/pressreleases/monetary20261028a1.htm
Reuters via Yahoo Finance: https://finance.yahoo.com/economy/policy/articles/fed-holds-rates-steady-awaits-180301828.html

## Sources
- Federal Reserve October 28 statement: https://www.federalreserve.gov/newsevents/pressreleases/monetary20261028a.htm
- Federal Reserve implementation notice: https://www.federalreserve.gov/newsevents/pressreleases/monetary20261028a1.htm
- Reuters decision report: https://finance.yahoo.com/economy/policy/articles/fed-holds-rates-steady-awaits-180301828.html