The Federal Reserve held interest rates steady on Wednesday, October 28, 2026, keeping its benchmark rate in a range of 3.75 percent to 4.00 percent. The decision, taken just six days before the November 3 midterm elections, was widely expected — but the 10-2 vote behind it, and what it signals for December, matter for anyone with a mortgage, a credit card balance, or savings in the bank.
The short answer is this: borrowing costs are not coming down yet, and they could still go up. Two policymakers voted for an immediate rate hike, inflation is still well above the Fed’s target, and traders now put the odds of a December hike at roughly 85 percent, according to futures pricing reported after the decision.
What the Fed decided — and why two members dissented
The 12-member Federal Open Market Committee voted 10-2 to hold rates, citing the need for more data in the fight against inflation. The Fed said “the accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee’s 2 percent goal.”
Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, both preferring an immediate quarter-point hike. Their argument, in essence, is that inflation has stayed too high for too long: consumer prices rose 3.7 percent in September compared with a year earlier, up sharply from 2.4 percent in February, just before the Iran war sent energy prices soaring, according to reporting on the decision. The Fed has now missed its 2 percent inflation target for more than five years.
The hold follows a hike in September — the Fed’s first in three years. Chair Kevin Warsh said the period ahead was “information-rich,” and that it was too early to call December, with six weeks of data still to come before the December 8-9 meeting.
What it means for your money
For borrowers, a hold means no immediate relief — and a possible December hike means costs could rise again. Mortgage rates are unlikely to fall meaningfully on this decision alone, and credit card rates, closely tied to the Fed’s benchmark, will stay near current levels.
For savers, higher rates for longer generally support returns on savings accounts and certificates of deposit, though banks do not always pass the full benefit through quickly. This is general information, not personal financial advice: your own rate depends on your lender, credit profile and loan type.
Also this week: the SSI payment on Friday, October 30
Separately, Supplemental Security Income (SSI) recipients should watch for a deposit on Friday, October 30. That is November’s SSI payment arriving early, because November 1 falls on a Sunday — not an extra check. The maximum federal SSI payment for 2026 is $994 a month for an eligible individual and $1,491 for an eligible couple.
Key takeaways
- Fed decision, Oct. 28: rates held at 3.75%-4.00%, in a 10-2 vote.
- Dissenters: Governor Lisa Cook and Cleveland Fed President Beth Hammack, both favouring a quarter-point hike now.
- Inflation: 3.7 percent year over year in September, vs. the Fed’s 2 percent target; up from 2.4 percent in February.
- Next meeting: December 8-9; futures pricing put a December hike at roughly 85 percent odds.
- SSI: November’s payment arrives Friday, October 30 (early, because Nov. 1 is a Sunday) — not extra money.
- Borrowers: no immediate relief; savers: higher rates for longer generally support deposit returns.
Bottom line: The Fed paused, but it did not pivot. Plan as if borrowing stays expensive — and SSI recipients should expect Friday’s deposit, not a bonus.
