October 28, 2026
For release at 2:00 p.m. EDT
WASHINGTON — In a decision that reflects ongoing deliberation over the balance between economic resilience and persistent price pressures, the Federal Open Market Committee (FOMC) voted to maintain the target range for the federal funds rate at 3-3/4 to 4 percent. The monetary policy action was approved by a 10-2 vote following a regularly scheduled meeting of the central bank’s policy-making arm.
The central bank confirmed that it is continuing its established policy of maintaining ample reserves within the banking system to support smooth financial operations. According to the official statement released by the Federal Reserve, the decision to hold the benchmark interest rate steady was made in support of the institution’s statutory dual mandate, which tasks the monetary authority with promoting maximum employment and stable prices for the American public.
The vote revealed a distinct division among the ranks of the central bank’s leadership. Voting against the monetary policy action were Lisa D. Cook and Beth M. Hammack, both of whom preferred to raise the target range for the federal funds rate by one-quarter of a percentage point at this meeting, signaling a continued concern over the pace of price increases and a desire for a tighter monetary stance.
In its comprehensive assessment of the broader economic landscape, the Federal Open Market Committee noted that overall economic activity is currently expanding at a strong pace. This robust expansion persists despite an environment of elevated uncertainty, which central bank officials attribute in part to ongoing geopolitical developments around the globe. Domestic spending has demonstrated notable resilience, serving as a key driver of the continued economic momentum.
Furthermore, the Committee highlighted positive developments on the supply side of the economy. Productivity growth remains strong, and capital investment by businesses has proven to be robust, indicating foundational strength in the corporate sector. In the labor market, job gains have successfully kept pace with the growth of the available workforce, while the national unemployment rate has changed little, remaining relatively stable.
Despite these positive economic indicators, the central bank underscored that inflation remains elevated. The ongoing persistence of higher price levels requires careful monitoring and a cautious approach to monetary policy adjustments. The official statement emphasized that the accumulation of more economic information in the coming period will help the Committee determine the exact policy stance appropriate to ensure a timely return of inflation to the Committee’s symmetric 2 percent long-term goal. Reaffirming its ultimate commitment to the public, the Committee stressed that it remains firmly dedicated to delivering price stability over the long run.
The Federal Reserve indicated that additional technical details regarding the execution of these monetary policy decisions can be found in the Implementation Note issued alongside the official FOMC statement.
For media inquiries regarding the rate decision and related economic analyses, individuals may contact the Federal Reserve via email or reach out to the media relations office by telephone at 202-452-2955.
