Fed holds rates at 3.75%–4% in split vote
By Staff Writer · Published 10/31/2026, 3:15:41 AM ET
The October 28 decision passed 10–2, with Lisa Cook and Beth Hammack seeking a quarter-point increase instead.
The Federal Reserve’s policy committee kept its federal funds target at 3.75% to 4% on October 28, approving the unchanged range by a 10–2 vote.
Lisa D. Cook and Beth M. Hammack dissented because they wanted to raise the range by a quarter of a percentage point, according to the committee’s statement. The statement said inflation remained elevated and that further information would help determine the policy stance needed to return it to the Fed’s 2% goal.
The committee described strong economic growth, resilient domestic spending and robust capital investment, alongside little change in unemployment. It cited geopolitical developments among the reasons for continuing uncertainty.
A separate implementation note kept interest on bank reserve balances at 3.90%, effective October 29, and retained the 4% primary credit rate. The New York Fed’s trading desk was instructed to conduct operations supporting the unchanged federal funds range and an ample supply of reserves.
What it means
The two dissenters’ preferred increase was not adopted: the operating instructions support the existing target range. The committee reiterated its 2% inflation objective without committing to a future rate change.
Source
This State & Nation summary is based on Federal Reserve Board’s original release, dated 2026-10-28. The reporting and statistics above are attributed to that publication.