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Macro & Fed1 min read

Federal Reserve Holds Benchmark Rates Steady at 3.75%–4.00% in October Policy Vote

The Federal Reserve left the federal funds rate unchanged at 3.75%–4.00% at its October 2026 meeting, underscoring stable economic growth and steady labor market conditions.

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Federal Reserve Holds Benchmark Interest Rate Steady at 3.75%–4.00%

The Federal Open Market Committee (FOMC) concluded its monetary policy meeting on October 28, 2026, voting to maintain the target range for the federal funds rate at 3.75% to 4.00%.

Statement Highlights

  • Policy Rate Stability: The committee held rates steady following earlier calibration moves, balancing employment stability and continued progress toward its 2 percent inflation objective.
  • Economic Assessment: Recent indicators suggest that economic activity has continued to expand at a moderate pace, with steady job gains and unemployment remaining relatively low.
  • Balance Sheet Reduction: The Federal Reserve confirmed it will continue reducing its holdings of Treasury securities and agency mortgage-backed securities according to plan.

Market Implications

Treasury yields held in a tight band and broader US equity indices responded constructively to the decision, as market participants welcomed policy stability amidst mixed corporate earnings across the technology and industrial sectors.