In brief
On Oct. 28, the Fed left its key rate unchanged at 3.75‑4 percent in a 10‑2 vote, amid robust jobs and resilient consumer spending but persistent inflation. Fed Chair Kevin Warsh warned that inflation remains “too high” and that further hikes could come later this year. The decision comes less than a week before the 2026 midterm elections and does not alter the policy outlook for the month.
In a Federal Open Market Committee meeting on Oct. 28, the U.S. Federal Reserve decided to keep its benchmark interest rate unchanged in the 3.75‑4 percent range, the same target it set after a 0.25‑percentage‑point hike in September.
According to Xinhua, the Fed’s 12‑member committee voted 10‑2 to keep the rate steady, citing that “economic activity is expanding at a strong pace” while inflation remains elevated. The statement highlighted resilient domestic spending, strong productivity, and steady job growth as factors supporting the decision.
As reported by Yonhap, the same 10‑2 vote left the U.S. rate unchanged and noted that the move follows the most recent increase. Fed Chair Kevin Warsh told a press briefing that “inflation remains too high” and warned that the Fed may pursue additional rate increases later in the year amid rising oil prices. Warsh also highlighted that the U.S.–South Korean interest‑rate gap is up to one percentage point and announced a schedule tweak, with rate‑setting votes at seven of eight meetings next year.
Kyodo News confirmed the Fed’s decision to hold the federal funds rate after September’s rise, underscoring the central bank’s cautious stance while it observes economic conditions before any further adjustments.
With the 2026 midterm elections less than a week away, the announcement underscores the Fed’s focus on balancing strong labor gains and domestic spending against the backdrop of persistent inflationary pressures. The decision leaves the market expectations largely met and the policy outlook unchanged for the duration of the current term.
