U.S. Fed holds interest rates steady despite surging inflation
The U.S. Federal Reserve has maintained current interest rates as it continues to monitor high inflation levels. The decision comes shortly before midterm elections, with economic policy remaining a central campaign issue.
Why it matters
Interest rate decisions directly impact consumer costs, business investment, and the broader economic outlook for the United States.
WASHINGTON The US Federal Reserve on Wednesday (October 28, 2026) held interest rates steady, in line with market expectations, days ahead of crucial midterm elections where surging inflation has been a key issue. The 12-member Federal Open Market Committee voted 10-2 to hold rates at a target range between 3.75 and 4.00%, citing the need for more data in the fight against inflation, after having hiked for the first time in three years at its previous meeting in September. The backdrop in which the U.S. Fed raised interest rate The backdrop in which the U.S. Fed raised interest rate Inflation in the U.S. hit a peak in May, at 4.2%, after which it climbed down to 3.4% — far above the Federal Reserve’s target of 2% The backdrop in which the U.S.
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