The U.S. Federal Reserve kept its benchmark interest rate unchanged at a range of 3.75% – 4.00% at its meeting on Wednesday, 28 October 2026, in a 10-to-2 vote, with two members favoring a 25-basis-point hike, while confirming that inflation remains above target. The Fed rate decision was in line with the expectations of most markets, which had anticipated a hold.
Details of the Fed rate decision
The Federal Open Market Committee (FOMC) kept rates at their current level, following the hike at its September meeting. The vote was somewhat split, as two members backed a 25-basis-point increase, signaling a hawkish wing within the committee that sees inflationary pressures as still warranting a more restrictive policy.
The statement confirmed that inflation remains above the 2% target, justifying the cautious tone and keeping options open ahead of the next meeting in December.
Market reactions to the decision
| Asset | Level | Change |
|---|---|---|
| U.S. 10-year Treasury yield | 5.017% | ▲ +3.1 bps |
| Gold (XAU/USD) | $4,039.23 | ▼ −0.52% |
| WTI crude | $102.60 | ▲ +2.7% |
| Brent crude | $111.49 | ▲ +1.9% |
| Dow Jones | — | ▲ +0.19% |
| S&P 500 | — | ▲ +0.13% |
| Nasdaq | — | ▼ −0.04% |
The U.S. 10-year Treasury yield rose to 5.017%, reflecting expectations that monetary policy will stay tight for longer. Gold fell under pressure from higher yields and a stronger dollar, while oil prices jumped on supply-and-demand factors. U.S. equities were mixed, with a slight upward bias.
Why did the Fed hold rates?
The decision reflects a careful balance between taming high inflation and supporting growth. With inflation still above target, the committee preferred to wait rather than cut rates, while leaving the door open to further tightening if needed — as expressed by the two members who favored a hike.
Eyes on Kevin Warsh’s press conference and the December path
Attention now turns to the press conference of Fed Chair Kevin Warsh, looking for signals on the rate path at the December meeting, amid anticipated U.S. inflation and GDP data. A hawkish tone would support the dollar and yields and pressure gold, while any hint of near-term easing could reverse these moves.
What the decision means for traders
In the short term, the backdrop favors the dollar and higher yields, pressuring gold. For a detailed technical view, see our gold analysis today and oil analysis today. The press conference and upcoming inflation data remain the key drivers for markets in the days ahead.
Bottom line
The Fed rate decision held rates at 3.75% – 4.00% in a 10-2 vote, confirming inflation remains above target. While gold fell and yields and oil rose, the December meeting and Kevin Warsh’s press conference remain the market’s focus for the next direction.
Frequently asked questions
What is the Fed’s rate decision today?
The Federal Reserve held interest rates at 3.75% – 4.00% on 28 October 2026, in a 10-to-2 vote, with two members favoring a 25-basis-point hike.
What is the U.S. interest rate now?
The U.S. interest rate currently stands between 3.75% and 4.00% following the hold decision.
How did the decision affect gold and oil?
Gold fell to $4,039.23 (−0.52%) under pressure from higher yields, while WTI crude rose to $102.60 (+2.7%) and Brent to $111.49 (+1.9%).
When is the next Fed meeting?
The next meeting is scheduled for December 2026, with expectations shaped by inflation and GDP data and the tone of the press conference.
This content is for news and educational purposes only and is not investment advice. Trading financial assets involves risk.
