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Fed Holds Benchmark Rate Unchanged Despite Dissent

By Drooid · Oct 28, 2026 · How we work

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Summary

U.S. Federal Reserve (Fed) Chairman Kevin Warsh announced the benchmark interest rate remains unchanged.
September CPI rose 3.7% year-over-year, with core CPI at 2.6% after a 0.3-point gain.
The Fed’s PCE price index for September was forecast at 3.7%.
Kevin Warsh said third-quarter GDP growth appears above 3% and first-half growth was revised to 2.4%.
Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, preferring a rate hike.

History

In August 1979 Paul Volcker became Fed chairman and, with Treasury Secretary G. William Miller, lifted the federal-funds rate to roughly 11 percent, sparking the “Volcker shock.” Inflation, which hit 14.8 percent in March 1980, fell below 3 percent by 1983. Today the Fed holds rates steady, while Governors Lisa Cook and Beth Hammack dissent, echoing the 1979 split.

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In August 1979 Paul Volcker became Fed chairman and, with Treasury Secretary G. William Miller, lifted the federal-funds rate to roughly 11 percent, sparking the “Volcker shock.” Inflation, which hit 14.8 percent in March 1980, fell below 3 percent by 1983. Today the Fed holds rates steady, while Governors Lisa Cook and Beth Hammack dissent, echoing the 1979 split.

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