The Federal Open Market Committee decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent, according to a statement released on October 28, 2026.
The decision was approved by a 10–2 vote to support the Federal Reserve's dual mandate and continue the policy of maintaining ample reserves in the banking system.
Economic activity is currently expanding at a strong pace, characterized by resilient domestic spending, strong productivity growth, and robust capital investment. While job gains have kept pace with the workforce, the unemployment rate has changed little.
Despite the strong economic activity, officials noted that inflation remains elevated. The Committee stated that the accumulation of more information will assist in determining a policy stance to ensure inflation returns to the 2 percent goal.
The vote was not unanimous, as Lisa D. Cook and Beth M. Hammack voted against the monetary policy action. Both members preferred to raise the target range for the federal funds rate by 1/4 percentage point at the meeting.
