Compiled from reports by NBC News, CBS News and Al Jazeera. See the original articles linked below.
The US Federal Reserve left its benchmark interest rate in a range of 3.75% to 4% on Wednesday, October 28, 2026, according to NBC News, CBS News and Al Jazeera. Al Jazeera reported that the vote was 10-2 and that the outcome matched market expectations, noting that CME FedWatch pricing showed a better than 90 percent chance of no change.
NBC News and CBS News both reported that Governor Lisa Cook and Cleveland Fed President Beth Hammack were the two dissenters, each favoring a quarter-point increase. NBC News added that this was the first dissent of Cook's career.
Inflation and the Fed's assessment
Al Jazeera and NBC News reported that annual inflation rose to 3.7% in September from 3.4% in August, with higher gasoline, diesel and crude oil prices cited as a main driver. CBS News, which linked elevated energy costs to the Iran war, said core inflation came in at 2.6%, and that both figures were above expectations.
CBS News and Al Jazeera reported that the Fed's statement described economic activity as growing at a strong pace. NBC News said the statement also said inflation remains elevated and that the central bank wants more data before deciding on any move. Fed Chair Kevin Warsh, as quoted by NBC News, said inflation is too high while real economic activity is heading in the right direction. CBS News reported that Warsh declined to say what officials would do next.
Rate path
The Fed raised rates in September, its first increase in three years, according to CBS News. Al Jazeera reported that President Donald Trump criticized that move and has repeatedly pushed for lower rates. NBC News said Morgan Stanley economists believe the Fed might not be done tightening, with later steps depending on incoming data.
CBS News said many economists expect an increase at the next meeting, set for December 8-9. Al Jazeera also said forecasts point to a quarter-point rise then. It reported that Fed governor Michelle Bowman said she did not feel urgency for further action at this point.
Politics and meeting schedule
NBC News and Al Jazeera described the decision as the Fed's last before the midterm elections. NBC News reported that Warsh said politics played no role. NBC News also noted that voters regularly name rising prices as a leading concern and cited a recent poll putting Trump's approval on cost of living at 27%.
Warsh also announced a reduction in the number of rate-setting meetings, NBC News reported: seven next year rather than eight, and two fewer in 2028, which he said would improve the quality of decisions. CBS News described the change differently, saying that from 2027 one of the eight yearly meetings would be devoted only to strategy discussion, with no rate vote or policy statement. CBS News also reported that the major US stock indexes ended the day roughly flat.
Al Jazeera noted that the decision came shortly before the release of the Personal Consumption Expenditures price index, the inflation measure the Fed uses in its assessments.
Sources
- Federal Reserve leaves interest rates unchanged despite rising inflation (NBC News, 2026-10-28)
- Federal Reserve holds interest rates steady even as inflation remains high (CBS News, 2026-10-28)
- Fed leaves interest rates unchanged despite inflation in the US (Al Jazeera, 2026-10-28)
This article was compiled with AI assistance from the reports listed above and reviewed by GMA before publishing.