Fed Holds Rates at 3.75%-4% in 10-2 Vote: What the Pause Means for Indian Markets, the Rupee and Your Loans
The United States Federal Reserve held its benchmark interest rate steady on Wednesday, October 28, 2026, keeping the target range at 3.75 per cent to 4.00 per cent. The decision, taken by the Federal Open Market Committee in a 10-2 vote, was in line with what most market participants had expected — but the split inside the committee, and the inflation backdrop behind it, left investors with plenty to think about. Two committee members — Governor Lisa Cook and Cleveland Fed President Beth Hammack — dissented, preferring an immediate quarter-point increase. Their dissent is the clearest signal yet that the Fed's pause is not a declaration that the inflation fight is over. It is a decision to wait for more data before deciding whether borrowing costs need to go higher still. Why the Fed paused — and why two members disagreed The Fed raised rates by a quarter point at its previous meeting in September, its first increase in three years, lifting the range to 3.75%-4.00%. Since then, ...