Market Expectations Ahead of the Fed Interest Rate Decision and October Agenda
The US Central Bank (Fed) kept its policy rate steady in the 3.75-4.00 percent range at its October meeting, while the decision received dissenting votes from two members.
The US Central Bank (Fed) kept its policy rate steady in the 3.75-4.00 percent range, in line with market expectations, at its October 2026 meeting. Lisa Cook and Beth Hammack dissented from the decision, which was adopted by a vote of 10 to 2, requesting a 25 basis point hike.
The US Central Bank decided to leave the interest rate unchanged following the Federal Open Market Committee (FOMC) meeting held on October 27-28, 2026. The decision text emphasized that economic activity expanded at a strong pace, growth momentum and household spending were maintained, but uncertainties stemming from geopolitical developments and inflationary pressures remained high. The Bank had implemented a 25 basis point hike in September.
Holding a press conference following the decision, Fed Chair Kevin Warsh stated that inflation remained high and monetary policy conditions had not eased. Warsh expressed that eight meetings are expected to be held in 2027, including one strategy-focused meeting without a vote, and six meetings are expected to be held in 2028.