The Federal Reserve held its benchmark interest rate steady at a range of 3.75% to 4.00% following its meeting on October 28, a decision that arrived just days before Tuesday's midterm elections.
The Fed, under Chair Kevin Warsh, kept the rate unchanged after raising it in September for the first time in more than three years. Two members of the rate-setting Federal Open Market Committee dissented from the decision to hold, preferring to raise rates further, which keeps the possibility of another increase in play at the Fed's next meeting on December 9. Policymakers described their guidance as neutral to slightly cautious, saying they want more economic data before their next move.
The Fed's dot plot, a chart showing individual officials' rate expectations, had earlier shown that a majority of participants expected at least one more increase before the year was out, alongside projections of inflation, as measured by the PCE index, running around 3.7% for 2026 and unemployment near 4.1%. Higher borrowing costs feed directly into the cost of mortgages, car loans and credit cards, a pocketbook issue that many voters are weighing as they cast ballots this week.
Fed officials have generally sought to keep political considerations out of their public remarks on policy, emphasizing that their decisions are based on economic data such as inflation and employment rather than the electoral calendar. The timing of this meeting, falling exactly one week before a national election, nonetheless drew attention from commentators watching how rate policy and voter sentiment intersect.
For everyday borrowers, a steady Fed rate means mortgage rates, auto loans and credit card interest are likely to hold roughly where they have been in recent weeks rather than moving sharply in either direction, at least until the December meeting provides more clarity.
Did the Fed raise or cut rates?
Neither. The Fed held its benchmark rate steady at 3.75% to 4.00% at its October 28 meeting.
When is the Fed's next decision?
The next scheduled FOMC meeting is December 9, 2026.