The Federal Open Market Committee (FOMC) approved a statement on October 28, 2026, to maintain the target range for the federal funds rate at 3-3/4 to 4 percent. The decision was made by a vote of 10 to 2.
The Committee stated that it is continuing its policy of maintaining ample reserves in the banking system. The statement described economic activity as expanding at a strong pace. While uncertainty remains elevated due to geopolitical developments, domestic spending has been resilient. The Committee noted that productivity growth is strong and capital investment is robust.
In terms of the labor market, the Committee reported that job gains have kept pace with the workforce and the unemployment rate has changed little. However, the statement indicated that inflation remains elevated. The Committee stated that the accumulation of more information will help determine the policy stance appropriate to ensure a timely return of inflation to the 2 percent goal.
Voting against the monetary policy action were Lisa D. Cook and Beth M. Hammack. Both members preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting.
