In brief
The Fed, voting 10‑2, maintained its federal funds target range at 3.75‑4.00 percent, citing robust economic activity but persistently high inflation. Chair Kevin Warsh warned inflation is “too high” and that future hikes could come later in the year. The decision spurred modest gains in U.S. equity indices and lifted Asian markets, while analysts noted the pause may set the stage for a year‑end rate increase.
The Federal Reserve left its benchmark interest rate unchanged at the 3.75‑4.00 percent range on Tuesday, Oct. 28, 2026, just before the nation’s midterm elections, in a meeting that followed a quarter‑percentage‑point increase in September.
According to Xinhua, the meeting produced a 10‑2 vote among the 12 members of the Federal Open Market Committee, with two—Cleveland Fed President Beth Hammack and Fed Governor Lisa Cook—voting in favor of a 25‑basis‑point hike.
Fed Chair Kevin Warsh warned that inflation remains too high.
Inflation remains elevated, and we must get it down.
The Fed said it would observe incoming data before any further moves, a view echoed by analysts who noted the pause “sets the stage for a potential year‑end rate increase.” Yonhap reported that Warsh said the committee would consider more information before deciding on a rate hike later this year.
U.S. stocks rose modestly in the aftermath of the policy decision, with the Dow Jones Industrial Average up 0.19 percent, the S&P 500 up 0.28 percent, and the Nasdaq up 0.27 percent, while most S&P 500 sectors closed in positive territory.
South Korean equity markets mirrored the U.S. move, with the KOSPI gaining 0.17 percent as investors looked ahead to Samsung Electronics’ expected strong third‑quarter earnings driven by memory‑chip demand.
