Fed holds rates at 3.75%–4% in 10–2 vote as two officials push for a hike

The Federal Reserve stood still, but not quietly. On Oct. 28, 2026, the Federal Open Market Committee kept the federal funds target range at 3.75%–4% in a 10–2 vote, according to the Fed's statement. Both dissenters wanted a hike.

Two votes for a hike

Governor Lisa D. Cook and Cleveland Fed President Beth M. Hammack preferred to raise the range by 1/4 percentage point, the statement says. CNBC reports it was Cook's first dissent since joining the Fed in 2022, and that the range has been unchanged since the quarter-point increase in September 2026.

The committee's language stayed hawkish: "Inflation remains elevated. The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee's 2 percent goal. The Committee will deliver price stability." Economic activity was described as "expanding at a strong pace."

Warsh: growth strong, inflation too high

In his opening statement, Chair Kevin Warsh said first-half 2026 GDP growth was revised up from 1.8% to 2.4%, and that third-quarter growth was "likely running above 3 percent." He said inflation has been running above the Fed's objective "for close to 6 years" and that energy prices "have moved higher again in recent weeks." CNBC cites the Atlanta Fed's GDPNow tracker at 3.4% annualized growth for the third quarter.

Fewer rate-setting meetings

Warsh also changed the calendar: "We believe eight meetings per year is the right number for the FOMC. But in 2027, one meeting will focus exclusively on broad monetary policy strategy, with neither a vote on the federal funds rate nor a policy statement anticipated." In 2028, he expects two strategy meetings and six policy-setting meetings.

CNBC reports futures pricing points to a strong possibility of another hike at the December 2026 FOMC meeting. Warsh gave no explicit forward guidance.