Fed holds at 3.75–4%; Cook and Hammack dissent in favour of a hike

Victoria Shinder29 October 2026, 09:281 min read

The Federal Open Market Committee kept the target range for the federal funds rate at 3.75% to 4% on 28 October, in a statement approved by a 10–2 vote. Governor Lisa D. Cook and Cleveland Fed President Beth M. Hammack voted against, preferring to raise the range by a quarter percentage point.

The statement describes economic activity as expanding at a strong pace. It says uncertainty remains elevated, partly because of geopolitical developments, while domestic spending has been resilient, productivity growth is strong and capital investment robust. Job gains have kept pace with the workforce and the unemployment rate has changed little. Inflation, it says, remains elevated.

On the outlook the wording is short: the accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to its 2% goal, and the Committee "will deliver price stability". It is continuing its policy of maintaining ample reserves in the banking system.

What it means

Both dissents pointed upward, not downward, and the statement contains no language about easing. Combined with "strong pace" for activity and "elevated" for inflation, the direction of debate inside the Committee is between holding and tightening. The phrase "accumulation of more information" commits to nothing on timing, which leaves the next move to the data released between now and the following meeting.