The US Federal Reserve kept interest rates unchanged on Wednesday, October 28, 2026, as markets had expected. The surprise was in the vote: two of the twelve voters wanted to raise rates right away, and Chair Kevin Warsh declined to rule out a hike at the next meeting in December.
Key facts
- Decision: the federal funds target range stays at 3.75% to 4.00%, announced at 2:00 pm New York time (18:00 GMT).
- Vote: 10–2. Governor Lisa Cook and Cleveland Fed President Beth Hammack voted against, preferring a 0.25 percentage point hike.
- Last move: in September the Fed raised rates for the first time since 2023, in a unanimous vote.
- The statement: the Fed now says the economy is growing “at a strong pace” (in September it said “solid”) and repeats that inflation “remains elevated”. It adds that more information will help it decide what to do next.
What Warsh said
At his press conference, Warsh said he does not believe in giving “forward guidance” or deciding future meetings in advance. He described the weeks before December as a period rich in new data and said politics played no part in the decision.
Two key reports arrive before the next meeting: the October jobs report on November 6 and October inflation data on November 10. The next decision is due on December 9, after a two-day meeting.
How markets reacted
- Bitcoin barely moved, trading around $81,000 after the announcement.
- US stocks made small gains.
- The 10-year Treasury yield rose to around 5%, a sign that borrowing costs remain high.
- Futures markets still lean towards a hike in December, although estimates of the odds differ between sources.
Our FOMC & Crypto dashboard shows what Bitcoin did around every Fed decision since 2019.
Why it matters
A hold with two votes for a hike tells markets the Fed is still leaning towards higher rates, not lower ones. Higher rates make borrowing more expensive and tend to pull money away from riskier assets such as crypto and tech stocks. With Warsh refusing to give hints, the November jobs and inflation numbers will likely decide whether December brings another hike.
This article is for information only and is not financial advice.
