The Federal Reserve's policy setting committee, the Federal Open Market Committee, is meeting today and will announce its decision on interest rates tomorrow, Wednesday, October 28. Investors are almost certain the Fed will leave its overnight lending rate unchanged.
According to the CME Group's FedWatch tool, markets have priced in roughly a 90 percent chance the Fed holds rates steady this week, with only a small chance of a further increase right now. The bigger debate is about December. Inflation has stayed elevated for longer than policymakers hoped, and the Fed raised rates in September after a run of price pressures tied in part to tariffs and a tight labor market. That has left the door open to another move before the year is out.
For everyday Americans, the practical effect of a pause is that credit card rates, auto loans, and mortgage rates are likely to hold roughly where they are for now, rather than easing. Analysts note that affordability pressures, on everything from housing to groceries, are weighing on household budgets at a moment when borrowing costs are not coming down. Roger Ferguson, a former Fed vice chair, has said he expects the Fed to hold this week but believes two further rate increases may ultimately be needed to bring inflation fully under control.
The decision lands in the middle of a heavy week for markets, with major technology companies reporting earnings and a closely watched initial public offering filing from the AI company Anthropic adding to the sense that this is a pivotal stretch for investors trying to gauge how much higher borrowing costs will bite into growth.
The rate decision and Fed Chair's press conference are expected Wednesday afternoon. Traders will be listening closely for any signal about whether a December increase is likely.
Will my mortgage or credit card rate change this week?
Probably not right away. The Fed is widely expected to hold rates steady, so rates tied to its benchmark should stay roughly where they are for now.
Why isn't the Fed cutting rates if the economy is slowing in places?
Inflation has remained higher than the Fed's target, so policymakers are prioritizing price stability even at the cost of keeping borrowing expensive.