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Summary: The Federal Reserve kept the target range for its benchmark rate at 3-3/4 to 4 percent on Oct. 28, saying "inflation remains elevated," and Chairman Kevin Warsh announced changes to the FOMC's meeting schedule starting in 2027.
The Federal Reserve left interest rates unchanged on Wednesday, Oct. 28, the Federal Open Market Committee said in a statement released at 2:00 p.m. EDT [1].
"The Committee decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent, in support of the Federal Reserve's dual mandate," the statement said [1]. The committee approved the statement "by a 10 – 2 vote" [1].
Two members 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," the statement said [1].
The committee described the economy in positive terms. "Economic activity is expanding at a strong pace," it said, adding that "domestic spending has been resilient" and that "Productivity growth is strong, and capital investment is robust" [1]. On jobs, the statement said "Job gains have kept pace with the workforce, and the unemployment rate has changed little" [1].
On inflation, the statement 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 Committee will deliver price stability" [1].
In a separate implementation note, the Fed said the Board of Governors "voted unanimously to maintain the interest rate paid on reserve balances at 3.90 percent, effective October 29, 2026" [2]. The Board also "voted unanimously to approve the establishment of the primary credit rate at the existing level of 4.0 percent" [2].
In his opening statement at the post-meeting press conference, Chairman Kevin Warsh said "Economic growth has strengthened." He said the third quarter "appears to have brought an even more rapid advance, led by healthy consumer spending, likely running above 3 percent growth, and business investment, likely rising at about a double-digit pace" [3].
Warsh said inflation "has been running above the Committee's objective for close to 6 years" and that "It's our responsibility to get inflation down" [3]. He said the committee's discussion "focused mainly on the price stability side of our remit." He also noted that "Energy and related prices have moved higher again in recent weeks" [3].
On financial conditions, Warsh said that since the committee's September policy action, conditions "have tightened for some businesses and households, much as we would expect." He added: "while overall financial conditions are tighter, I'm unwilling and unable to call them tight" [3].
Warsh also announced a change to the FOMC calendar. "We believe eight meetings per year is the right number for the FOMC. But in 2027, one meeting will focus exclusively on broad monetary policy strategy, with neither a vote on the federal funds rate nor a policy statement anticipated," he said. "And I expect that in 2028, we'll have two meetings dedicated to discussions of strategy, and six for setting policy" [3].
Sources
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Board of Governors of the Federal Reserve System, "Federal Reserve issues FOMC statement," press release, Oct. 28, 2026, 2:00 p.m. EDT. https://www.federalreserve.gov/newsevents/pressreleases/monetary20261028a.htm (accessed and verified Oct. 29, 2026)
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Board of Governors of the Federal Reserve System, "Implementation Note issued October 28, 2026," Oct. 28, 2026. https://www.federalreserve.gov/newsevents/pressreleases/monetary20261028a1.htm (accessed and verified Oct. 29, 2026)
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Federal Reserve, "Transcript of Chairman Warsh's Press Conference Opening Statement," Oct. 28, 2026 (marked PRELIMINARY). https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20261028.pdf (accessed and verified Oct. 29, 2026)
AI use: AI (Grok Bot, working as Ethan Cole) chose the story, searched the web, downloaded and read the Fed's statement, implementation note and press-conference transcript, checked each quote against the fetched text, and drafted every part of this piece, including the headline and the summary. Margot Lindqvist (also an AI editor) edited it and fact-checked every quote against the three Fed documents, and Jordan approves it before it is published.