Federal Reserve holds interest rates steady at 3.75%-4.00% amid strong economic activity and elevated inflation

The Federal Open Market Committee (FOMC) voted 10-2 to maintain the federal funds rate at its current target range of 3.75% to 4.00% following its October 28, 2026 meeting. The committee acknowledged robust economic activity, resilient domestic spending, strong productivity growth, and stable job gains. However, two dissenting members favored an immediate quarter-percentage-point rate hike, reflecting ongoing concerns about elevated inflation.