Fed Holds Rates at 3.75%–4% in 10-2 Vote as Two Officials Back a Hike
The Federal Reserve kept its benchmark interest rate unchanged on Wednesday, October 28, 2026, but the decision was not unanimous. The policy-setting committee voted 10-2 to hold the federal funds target range at 3.75% to 4%, with two officials preferring to raise borrowing costs instead. Markets had largely expected a pause, and U.S. stocks ended the session slightly higher.
Two votes for a hike
According to Yahoo Finance's market coverage, the two dissenters were Cleveland Fed President Beth Hammack and Governor Lisa Cook, and both favored a rate increase. CNN's report on the decision likewise highlighted that two officials broke with the majority in favor of a hike. The split is notable because it shows that part of the committee sees inflation as still too elevated to leave policy where it is. French market commentary published the same day noted that the Fed had already raised rates by a quarter point in September, so Wednesday's move was a pause after a recent increase rather than a long stretch of inaction.
Warsh and the 2027 calendar
Fed Chair Kevin Warsh also announced that the central bank will hold one fewer policy-setting meeting in 2027 than this year. Investors were watching his remarks closely for any hint about the next step. Yahoo Finance reported that bond traders were pricing roughly an 85% chance of a quarter-point hike at the December 9 meeting. That probability is a market estimate, not a commitment by the Fed, and it can change quickly with new inflation and jobs data.
How markets reacted
Wall Street finished higher for a third straight session. Yahoo Finance reported gains of about 0.2% for the Dow, about 0.3% for the S&P 500 and about 0.3% for the Nasdaq, while Brazilian outlet O Tempo, citing the same session, put the figures at 0.25%, 0.28% and 0.32%. The small differences come from rounding and the timing of each report, but the direction is the same: equities took the hold in stride. The dollar weakened against other major currencies after the announcement, according to Brazilian market reports.
What to watch next
| Item | Detail |
|---|---|
| Target range | 3.75%–4% (unchanged) |
| Committee vote | 10-2 |
| Dissenters | Hammack, Cook (both for a hike) |
| Next meeting | December 9 |
| Market-implied hike odds for December | about 85% |
The key question for the coming weeks is whether incoming data convinces the committee's majority to join the two dissenters. With the next meeting set for December 9, upcoming inflation readings, labor-market figures and further comments from Warsh will shape expectations. Corporate earnings from large technology companies are also keeping attention on equities, but the rate path remains the main driver of cross-asset moves.
This article reports news and publicly available facts only. This is not investment advice.
