Federal Reserve Holds Federal Funds Rate at 3-3/4% to 4% in 10–2 Vote as Cook and Hammack Dissent in Favor of a Hike
Key Takeaways
- •The FOMC maintained the federal funds rate target at 3.75% to 4%.
- •The decision passed by a 10-2 vote, with Lisa D. Cook and Beth M. Hammack favoring a quarter-point increase.
- •The Committee reported strong economic activity, resilient domestic spending, robust capital investment, and little change in unemployment.
- •Inflation remains elevated, and policymakers said future decisions will depend on additional economic information.
- •The Fed reaffirmed its dual mandate and its policy of maintaining ample reserves in the banking system.
The Federal Reserve's Federal Open Market Committee left the target range for the federal funds rate unchanged at 3-3/4 to 4 percent, approving the decision by a 10–2 vote, according to a statement released at 2:00 p.m. EDT on October 28, 2026.
The Committee said the decision was made in support of the Federal Reserve's dual mandate and reaffirmed that it is continuing its policy of maintaining ample reserves in the banking system.
In its assessment of the economy, the Committee said economic activity is expanding at a strong pace and that domestic spending has been resilient, even though uncertainty remains elevated owing in part to geopolitical developments. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little.
On prices, the Committee said inflation remains elevated. "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 percent goal," the statement said, adding: "The Committee will deliver price stability." The framing signals that the Committee's judgment on its next policy stance will rest on economic information gathered between meetings.
Two officials dissented. Voting against the monetary policy action were Lisa D. Cook and Beth M. Hammack, who preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting. Dissents are recorded in the statement itself, and both of these leaned toward tighter policy, underscoring the range of views on the Committee as it works toward returning inflation to its 2 percent goal.
The FOMC is the monetary policy-making body of the Federal Reserve System and holds eight regularly scheduled meetings each year in Washington. Its decisions on the federal funds rate — the overnight rate at which depository institutions lend reserve balances to one another — shape borrowing costs across the U.S. economy, from mortgages and credit cards to business loans. The Committee's mandate, set by Congress, encompasses maximum employment and price stability.
The Federal Reserve also issued an Implementation Note dated October 28, 2026, setting out the operational details accompanying the decision.
Media inquiries may be directed to the Federal Reserve's press office by email or by phone at 202-452-2955.
The full FOMC statement is available on the Federal Reserve's website.
