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Fed Holds Rates at 3.75%–4% Despite Inflation Pressure

By Drooid · Oct 29, 2026 · How we work

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Summary

Fed Chair Kevin Warsh announced the Federal Reserve kept its benchmark rate at 3.75%-4%.
The Federal Open Market Committee voted 10-2 to maintain the federal funds rate unchanged.
Cleveland Fed President Beth Hammack and Governor Lisa Cook dissented, urging a rate increase.
September consumer-price index showed 3.7% year-over-year inflation, above the Fed’s 2% target.
CME FedWatch assigned an 82.6% chance of a 25-basis-point hike at the Dec 8-9 meeting.

Summary

The Federal Reserve (Fed) will reduce its annual policy meetings from eight to seven starting next year.
In September, the economy added 29,000 jobs and the unemployment rate stayed at 4.2%.
Fed officials said AI-driven spending by Amazon and Meta creates new inflation pressure.
The Fed will cut two additional meetings from its schedule by 2028.

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Fed Holds Rates

Fed Chair Kevin Warsh announced the Federal Reserve kept its benchmark rate at 3.75%-4%.
The Federal Open Market Committee voted 10-2 to maintain the federal funds rate unchanged.
Cleveland Fed President Beth Hammack and Governor Lisa Cook dissented, urging a rate increase.
September consumer-price index showed 3.7% year-over-year inflation, above the Fed’s 2% target.
CME FedWatch assigned an 82.6% chance of a 25-basis-point hike at the Dec 8-9 meeting.

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