Federal Reserve likely to skip rate hike despite elevated inflation

Federal Reserve policymakers are expected to keep their key interest rate unchanged at their meeting concluding today, October 28, 2026. This decision comes despite persistent elevated inflation and a rise in longer-term interest rates in financial markets, which have already begun to impact the economy, notably by making homeownership less affordable for millions of American households. Concurrently, the Bank of Canada is also holding a meeting today and is projected to increase its key rate, while the European Central Bank and the Bank of Japan are anticipated to maintain their current rates when they meet on Thursday.