Federal Reserve holds federal funds rate target range unchanged

The Federal Reserve said the Federal Open Market Committee maintained the target range for the federal funds rate at 3-3/4 to 4 percent. The decision supported the Federal Reserve's dual mandate. The committee continued its policy of maintaining ample reserves in the banking system.

The committee said economic activity was expanding at a strong pace. It said uncertainty remained elevated owing, in part, to geopolitical developments. The report said domestic spending had been resilient.

The statement said productivity growth was strong. It said job gains had kept pace with the workforce. The report also said the unemployment rate had changed little. The committee said it was continuing to monitor economic conditions and the effects of developments on the outlook for inflation.

Inflation remained elevated, according to the statement. The committee said the accumulation of more information would help it determine the policy stance appropriate to ensure a timely return of inflation to the committee's 2 percent goal. The committee said it would deliver price stability.

Lisa D. Cook and Beth M. Hammack voted against the monetary policy action. According to the statement, they preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting.

The Federal Open Market Committee approved the statement for release. The Federal Reserve's Implementation Note was issued October 28, 2026. The committee maintained ample reserves in the banking system and said the accumulation of more information would help determine the appropriate policy stance.