Federal Open Market Committee Maintains Federal Funds Rate Target Range

According to Federal Reserve Press Releases, the Federal Open Market Committee approved a statement for release on October 28, 2026, by a vote of 10 to 2. The Committee chose to keep the target range for the federal funds rate at 3-3/4 to 4 percent, which supports the Federal Reserve's dual mandate. The Committee also stated it is continuing its policy of maintaining ample reserves within the banking system.

Regarding the economy, the statement noted that economic activity is expanding at a vigorous pace. Although uncertainty persists, partly due to geopolitical events, domestic spending has shown resilience. Furthermore, productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has seen little change.

However, inflation continues to be elevated. The Committee indicated that gathering more information will assist in deciding the appropriate policy position to ensure inflation returns to the Committee's 2 percent objective in a timely manner, and the Committee intends to deliver price stability.

Lisa D. Cook and Beth M. Hammack voted against the monetary policy action, as they advocated for increasing the target range for the federal funds rate by 1/4 percentage point during that meeting.