Fed Rate Decision: Rates Held at 3.75%–4% as Two Officials Push for a Hike

In its latest Fed rate decision on October 28, 2026, the Federal Reserve held the federal funds target range at 3.75% to 4%. The vote was 10–2. Both dissenters, Lisa D. Cook and Beth M. Hammack, wanted to raise rates by a quarter point. The official FOMC statement says inflation "remains elevated", which is why markets now expect a hike, not a cut, at the next meeting.

This article is for information only and is not financial advice. Markets move fast, so check live prices and official releases before you trade.

Fed rate decision at a glance

Item	Detail
Date	October 28, 2026, 2:00 p.m. EDT
Decision	Hold at 3.75% to 4%
Vote	10–2
Dissents	Lisa D. Cook and Beth M. Hammack, both for a 0.25-point hike
December hike odds	Just under 75% (CME FedWatch, as of Oct 30, per CNBC)

What the FOMC statement said

• Growth: "Economic activity is expanding at a strong pace," and domestic spending "has been resilient."
• Jobs: "Job gains have kept pace with the workforce, and the unemployment rate has changed little."
• Inflation: "Inflation remains elevated." The Fed wants more information before setting the path back to its 2% goal.
• Balance sheet: the Fed keeps a policy of maintaining ample reserves in the banking system.

Why two dissents for a hike matter

Dissents are rare, and two in the same direction send a clear signal. Cook and Hammack think policy is not tight enough to bring inflation down. With growth strong and inflation high, the debate inside the Fed has shifted from "when to cut" to "whether to hike". According to CNBC, CME FedWatch put the chance of a quarter-point hike in December at just under 75% as of October 30.

What a hike would mean for markets

Market	Typical effect of higher rate expectations
Bond yields	Tend to rise, especially short-dated Treasuries
US dollar	Often strengthens against other currencies
Growth and tech stocks	Often come under pressure, as future profits are worth less today
Banks	Can benefit from wider lending margins
Gold and crypto	Often weaken when real yields rise

These are general patterns, not guarantees. Markets often price a move well before it happens.

What to watch before the December meeting

1. The October jobs report on Friday, November 6. A strong number supports a hike.
2. Inflation data later in November.
3. Fed speeches. Watch for hints from officials who voted to hold.
4. Oil prices. CNBC notes that conflict involving Iran could push oil, yields and inflation higher.

What it means for your money

• Savings: rates on savings accounts and short-term deposits tend to stay high while the Fed holds or hikes.
• Loans and credit cards: variable rates follow the Fed, so borrowing costs are unlikely to fall soon.
• Mortgages: these follow longer-term bond yields, which react to inflation and hike expectations.

Frequently Asked Questions

What is the current federal funds rate?

The target range is 3.75% to 4%, after the October 28, 2026 decision.

What did the Fed decide in October 2026?

It held the federal funds target range at 3.75% to 4% in a 10–2 vote.

Who dissented at the October FOMC meeting?

Lisa D. Cook and Beth M. Hammack. Both preferred a quarter-point hike.

Will the Fed raise rates in December 2026?

Nothing is decided. As of October 30, CME FedWatch priced the odds of a quarter-point hike at just under 75%, per CNBC.

Summary

The Fed rate decision on October 28 kept rates at 3.75% to 4%, but two officials voted for a hike and the statement called inflation elevated. Markets now see a December hike as likely, so the November 6 jobs report and November inflation data are the key releases to watch.

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