This story will be updated with further details from the Fed’s October 2026 interest rate decision.
The Federal Reserve on Wednesday held its benchmark interest rate steady amid elevated inflation as policymakers opted to wait for additional economic data after hiking rates in September.
Fed policymakers voted 10-2 to leave the federal funds rate at its target range of 3.75% to 4%. The move follows a 25-basis-point rate hike in September, which was the central bank’s first interest rate increase since July 2023.
The Federal Open Market Committee (FOMC), the central bank’s panel responsible for monetary policy moves, noted that economic activity “is expanding at a strong pace” despite uncertainty that is in part due to geopolitical developments, with strong productivity growth and capital investment, while job growth has “kept pace with the workforce, and the unemployment rate has changed litte.”
The FOMC statement added that inflation remains elevated and that the “accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee’s 2% goal. The Committee will deliver price stability.”
There were two dissenters from the FOMC decision to leave interest rates unchanged – Cleveland Fed President Beth Hammack and Fed Governor Lisa Cook each voted in favor of hiking interest rates by 25 basis points.
Federal Reserve Chair Kevin Warsh will speak at a press conference at 2:30 p.m. ET to discuss the interest rate decision.
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