The Federal Reserve held its federal funds target range, the Fed's key interest rate, at 3.75% to 4% on Oct. 28, 2026, the Federal Open Market Committee said in its 2 p.m. ET statement. The vote was 10-2; Lisa D. Cook and Beth M. Hammack dissented. The next meeting is scheduled for Dec. 8-9.
What did the Fed decide in October 2026?
Target range: 3.75% to 4%, unchanged from 3.75% to 4% set Sept. 16, 2026.
Vote: 10-2; Lisa D. Cook and Beth M. Hammack preferred to raise the target range by a quarter percentage point.
Interest on reserve balances, the rate the Fed pays banks on money they keep at the Fed: 3.90%. Overnight reverse repurchase rate, what the Fed pays money market funds and other firms that lend it cash overnight: 3.75%. Both take effect Oct. 29, per the Implementation Note.
What changed in the Fed's statement?
Growth: economic activity "is expanding at a strong pace," where the September statement said "a solid pace."
Policy outlook: "Today's policy action will support a timelier return to the Committee's 2 percent goal" was replaced with "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 Fed's calendar lists the December meeting with a Summary of Economic Projections, Fed officials' forecasts for growth, unemployment, inflation and the Fed's key interest rate.
After the decision, readers can check how much cash is sitting idle in their accounts.
Sources: Federal Reserve, FOMC statement and Implementation Note, Oct. 28, 2026, FOMC statement, Sept. 16, 2026, FOMC statement, Sept. 18, 2024 and FOMC calendars.
Silvia News is for information only and is not investment advice.
