The Federal Reserve’s Federal Open Market Committee (FOMC) held the federal funds rate target range at 3.75–4% by a 10–2 vote, with inflation still elevated and economic activity expanding strongly, following quarter-point cuts in October and December 2025 to 3.5–3.75% and a quarter-point increase in September 2026. Lisa D. Cook and Beth M. Hammack dissented, preferring a quarter-point increase. The central bank continued its ample-reserves policy and maintained interest on reserve balances at 3.90%, effective October 29, 2026, with securities purchases available when appropriate to maintain ample reserves. Inflation remained above the FOMC’s 2% goal, while domestic spending was resilient, productivity growth was strong and capital investment was robust. Job gains kept pace with the workforce, and unemployment changed little. Geopolitical developments continued to contribute to elevated uncertainty. The FOMC said further information would help determine the policy stance needed to return inflation to target in a timely manner and reaffirmed its commitment to delivering price stability.
Federal Reserve Board Holds Federal Funds Rate Target Range at 3.75–4%
The Federal Reserve’s Federal Open Market Committee held the federal funds rate target range at 3.75–4% by a 10–2 vote, amid elevated inflation and strong economic activity. Lisa D. Cook and Beth M. Hammack dissented, preferring a quarter-point increase.