Fed holds at 3.75% to 4% as Cook and Hammack dissent for a hike: 'inflation remains elevated'

The Federal Reserve left its benchmark rate unchanged at 3.75% to 4% on Wednesday, but the vote was 10 to 2, and both dissenters wanted to raise it. Governor Lisa D. Cook and Beth M. Hammack preferred a quarter-point increase, according to the Federal Open Market Committee's statement released at 2 p.m. Eastern. The statement says economic activity is "expanding at a strong pace" and that "inflation remains elevated," and it adds: "The Committee will deliver price stability."

What the Fed said

• Decision: the target range for the federal funds rate stays at 3-3/4 to 4 percent, "in support of the Federal Reserve's dual mandate."
• Vote: 10 to 2. Voting against were Lisa D. Cook and Beth M. Hammack, who "preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting."
• Economy: "Economic activity is expanding at a strong pace." Domestic spending "has been resilient," productivity growth is "strong" and capital investment is "robust." Job gains "have kept pace with the workforce," and the unemployment rate "has changed little."
• Inflation: "Inflation remains elevated." The Committee said more information "will help" it decide the stance needed for a "timely return of inflation to the Committee's 2 percent goal."
• Risks: uncertainty "remains elevated owing, in part, to geopolitical developments."
• Balance sheet: the Committee is "continuing its policy of maintaining ample reserves in the banking system."

Why the two dissents matter

A hold with two votes for a hike is a hawkish hold. It tells traders the debate inside the committee has tilted toward higher rates, not cuts, with inflation described as elevated and growth as strong. Headlines from other outlets already frame it that way: the New York Post reported that investors are betting on a December rate hike, and Bloomberg ran a segment on a prediction that the Fed will raise rates in December. We have not verified those market-pricing claims, and the statement itself gives no guidance on the next meeting.

How markets reacted

Stocks barely moved, which fits a decision that was widely expected. Our chart above shows the 10-year yield, which sits near 5%, down about 5% from its early-October peak. Gold slipped on a stronger dollar, per Investing.com, and oil kept climbing with Brent near $116 as the Iran and Gulf conflict continues. See our War Room coverage.

What it means for borrowers and businesses

• Mortgages: the 30-year fixed rate is 7.32%, according to the latest weekly Freddie Mac reading shown on our markets page. A Fed that is leaning toward hikes, not cuts, keeps that rate high.
• Business loans and credit lines: variable-rate products tied to prime stay where they are for now, but two votes for a hike mean the risk is to the upside.
• Savers: yields on cash stay near the current range for now.

The chair and the calendar

Bloomberg reported that Chair Kevin Warsh said the FOMC meeting schedule will change as of next fall. We have not seen his remarks or the details of the change, so treat that as unconfirmed until the Fed publishes it.

What to watch next

• Chair Warsh's press conference and any signal on a December hike.
• Thursday: weekly jobless claims.
• Earnings after the close: Microsoft and Alphabet, with Apple also due this week.
• Monday: ISM manufacturing, then the next set of inflation prints.

Related: The Nightcap, October 27 and the preview of today's crowded calendar.

Sources: Federal Reserve FOMC statement, October 28, 2026 (all quotes). Market levels from live widgets on our markets page at about 2:55 p.m. ET. Market-pricing claims attributed to the New York Post and Bloomberg headlines were not independently verified. This is market information, not investment advice.