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Archived breaking story from October 28, 2026. This link will not change. Browse the archive.

Breaking

Fed Holds Rates at 3-3/4 to 4 Percent; Cook and Hammack Dissent in Favor of a Hike

The Federal Open Market Committee voted 10 – 2 on October 28 to leave its benchmark range unchanged. Two members wanted a 1/4 percentage point increase, and the statement says inflation remains elevated.

By The Veil Press

What happened

The Federal Reserve left its key interest rate unchanged on October 28, 2026, keeping the federal funds target range at 3-3/4 to 4 percent [1]. The Federal Open Market Committee approved its statement by a 10 – 2 vote [1]. Lisa D. Cook and Beth M. Hammack voted against, saying they would have preferred to lift the range by 1/4 percentage point at this meeting [1].

The statement describes an economy that is "expanding at a strong pace," with resilient domestic spending, robust capital investment, strong productivity growth and unemployment that has changed little [1]. It also says "Inflation remains elevated" and that more information will guide the Committee toward a timely return to its 2 percent goal [1].

How it affects Americans

With the target range unchanged, short-term borrowing costs that follow the federal funds rate have no new push from the Fed for now [1]. The Board kept the interest rate it pays banks on reserve balances at 3.90 percent, effective October 29, 2026, and left the primary credit rate at 4.0 percent [2]. Two members preferred a 1/4 percentage point increase, so a later hike is possible; the statement does not give their reasons or signal a next move [1]. "The Committee will deliver price stability," it says [1].

The Veil Press view

A split with both dissents pointing toward tighter policy is a sign of where pressure inside the Committee lies [1]. The statement names geopolitical developments as one reason uncertainty remains elevated, but it gives no forecast for rates [1]. The Committee says it wants more information before settling on the stance needed to bring inflation back to 2 percent [1].

What we know

Confirmed

  • The target range stays at 3-3/4 to 4 percent [1][2].
  • The vote was 10 – 2, with Lisa D. Cook and Beth M. Hammack dissenting in favor of a 1/4 percentage point increase [1].
  • The interest rate on reserve balances stays at 3.90 percent, effective October 29, 2026 [2].

Still being reported

  • The statement does not say when, or in which direction, the Committee might next change the range [1].

Sources

  1. Primary Federal Reserve issues FOMC statement (Federal Reserve, 2026-10-28)
  2. Primary Implementation Note issued October 28, 2026 (Federal Reserve, 2026-10-28)

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