Federal Reserve issues FOMC statement
The Federal Open Market Committee kept the federal funds target range at 3.75%‑4%, highlighted strong economic activity and still‑elevated inflation, and noted that two members had voted for a 0.25‑point rate hike.
Original text
ENOriginally published by Federal Reserve Board (in English). Reproduced in full, without modifications.
The Federal Open Market Committee approved the following statement for release by a 10 – 2 vote:
The Committee decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent, in support of the Federal Reserve's dual mandate. The Committee is continuing its policy of maintaining ample reserves in the banking system.
Economic activity is expanding at a strong pace. While uncertainty remains elevated owing, in part, to geopolitical developments, 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 remains elevated. The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee's 2 percent goal. The Committee will deliver price stability.
Voting against the monetary policy action 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.
For media inquiries, please email [email protected] or call 202-452-2955.
Implementation Note issued October 28, 2026
Source: Board of Governors of the Federal Reserve System (public domain).
View original publicationMarket impact
Holding rates steady may support a strong dollar, as investors could view the policy stance as still restrictive. A stronger dollar often puts downward pressure on commodity prices and export‑oriented earnings, which could in turn weigh on U.S. equity indices.
For equities, the decision not to raise rates could temper bullish momentum in the S&P 500, Nasdaq 100 and Dow Jones, since market participants might infer that further tightening is less likely. Yet the continued presence of high inflation could sustain uncertainty and generate volatility in stock prices.
Neuralis Cap analysis for informational purposes only. It does not constitute investment advice.
The summary and market-impact analysis were prepared by Neuralis Cap with AI assistance from the source text.
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