The Federal Reserve held its target range at 3.75%–4.00% on October 28, 2026. The vote was 10–2, and both members who disagreed wanted a quarter-point increase. A hold means rates tied to the Fed's range, like credit cards and home equity lines, should not get more expensive because of this meeting. Fixed-rate loans are unaffected. The next decision is December 9.
Key takeaways
- The Fed kept its target range at 3.75%–4.00% on October 28, 2026, in a 10–2 vote. Lisa Cook and Beth Hammack dissented in favor of a quarter-point increase.
- The Fed's statement says inflation "remains elevated" and describes economic activity as "expanding at a strong pace."
- The bank prime loan rate stayed at 7.00% and the effective federal funds rate was 3.88% on October 27.
- Freddie Mac's 30-year mortgage rate averaged 7.32% on October 22, down from 7.40% a week earlier but above 6.19% a year ago.
- The next FOMC meeting is December 8–9, 2026, and it comes with new economic projections.
The Federal Reserve decided on October 28 to leave interest rates where they are. That is good news if you carry a balance on a variable-rate card or a home equity line. It is not a promise that rates are headed down.
Here is what the Fed said, who disagreed, what the key rates look like today, and what a hold means in dollars. We are explaining the decision, not predicting the next one.
What did the Fed decide on October 28?
The Fed’s policy committee kept the federal funds target range at 3.75% to 4.00%. The federal funds rate is what banks charge each other for overnight loans, and it sets the tone for many other rates.
The vote was 10–2. Lisa D. Cook and Beth M. Hammack voted no. They wanted to raise the range by a quarter of a percentage point.
The statement describes the economy as “expanding at a strong pace” and says job gains have kept pace with the workforce. It also says “Inflation remains elevated,” and that the Fed will “deliver price stability.” Price stability means getting inflation back to its 2 percent goal.
Where do key rates stand now?
| Rate | Latest value | Date |
|---|---|---|
| Fed target range | 3.75%–4.00% | Oct. 28, 2026 |
| Effective federal funds rate | 3.88% | Oct. 27, 2026 |
| Bank prime loan rate | 7.00% | Oct. 27, 2026 |
| 30-year fixed mortgage (Freddie Mac) | 7.32% | Oct. 22, 2026 |
| 15-year fixed mortgage (Freddie Mac) | 6.68% | Oct. 22, 2026 |
| FDIC national average savings rate | 0.38% | Oct. 19, 2026 |
| FDIC national average 12-month CD | 1.76% | Oct. 19, 2026 |
The prime rate is the base rate many banks use for variable-rate loans. It did not move, so loans tied to it should not get more expensive because of this meeting.
What does a hold mean for your debt?
It depends on how your rate is set:
- Variable-rate credit cards: Many are tied to the prime rate. No change in prime means no change from this decision. Check your cardholder agreement. Our credit card payoff calculator shows how fast you can pay down a balance.
- Home equity lines (HELOCs): These often reset based on an index. Look for the “index” and “margin” in your documents. Our HELOC calculator can test higher rates.
- Fixed-rate loans: Mortgages, car loans and student loans with a fixed rate never change with the Fed.
To see what the two dissenters wanted, here is a quarter-point increase on a $50,000 HELOC balance, shown as an illustration: $50,000 × 0.0025 = $125 more a year. The hold means you avoid that for now. On a $5,000 card balance the same move would be $5,000 × 0.0025 = $12.50 a year.
Are mortgage rates falling?
A little, but not because of the Fed. Freddie Mac reported the 30-year fixed rate at 7.32% on October 22, down from 7.40% a week earlier. A year earlier it was 6.19%.
Here is what that does to a $320,000 loan (illustration, principal and interest only, 30 years):
| Rate | Monthly payment |
|---|---|
| 6.19% (Oct. 2025) | $1,957.82 |
| 7.40% (Oct. 15, 2026) | $2,215.62 |
| 7.32% (Oct. 22, 2026) | $2,198.18 |
The drop from 7.40% to 7.32% saves about $17 a month. Compared with a year ago, the payment is still about $240 higher ($2,198.18 − $1,957.82). Try your own numbers in our mortgage calculator. Freddie Mac updates its survey every Thursday, so a newer number may be out by the time you read this.
Why did two members want a hike?
Because the statement says inflation remains elevated. A dissent does not change anything on its own, since the majority decides. It does show that a rate increase is still being discussed inside the Fed.
The Fed has not said what comes next. The next meeting is December 8–9, 2026, and it comes with new economic projections. The calendar says minutes of this meeting are released three weeks after the decision.
What about your savings?
Savers are not seeing much benefit yet. The FDIC puts the national average savings rate at 0.38% and the 12-month CD at 1.76%. On $10,000, that is $38 a year in savings ($10,000 × 0.0038) or $176 in a 12-month CD ($10,000 × 0.0176). Those are averages, and banks set their own rates, so some accounts pay more.
What to do now
- Check your card’s rate type. Look for “variable” and “prime” in your agreement.
- Use the pause to pay down debt. Put extra money toward your highest-rate balance first.
- Test a higher rate anyway. Add 0.25 to your variable rate and see the cost, since a December increase is still possible.
- Compare savings accounts. If yours pays close to 0.38%, see what other accounts and CDs offer with our savings calculator.
- Don’t wait on mortgage rates. Set the highest payment you are comfortable with and test it at several rates.
- Mark December 9. That is the next decision day.
This article is general information, not personal financial advice.
Frequently asked questions
Did the Fed raise rates on October 28, 2026?
No. The Federal Open Market Committee kept the federal funds target range at 3.75% to 4.00%. The vote was 10–2. Lisa Cook and Beth Hammack voted against the decision because they preferred raising the range by a quarter of a percentage point. The Fed raised the range to this level at its September 16 meeting.
When is the next Fed meeting?
The Federal Reserve's calendar lists the next meeting as December 8–9, 2026, with the decision on the 9th. It is a meeting that comes with a Summary of Economic Projections, which shows where officials expect rates, inflation and unemployment to go. The Fed's calendar says minutes of the October meeting come out three weeks after the decision.
Will my credit card rate change after the Fed holds rates?
Not because of this meeting. Many credit cards have a variable rate tied to the prime rate, and the prime rate stayed at 7.00%. Your card's rate can still change for other reasons, so check your cardholder agreement for the index and margin it uses. Paying down the balance is the surest way to cut interest costs.
Are mortgage rates going down now?
Not necessarily. The Fed does not set mortgage rates. Freddie Mac's survey dated October 22 showed the 30-year fixed rate at 7.32%, down from 7.40% the week before. Freddie Mac updates the number every Thursday, so check the latest survey. Lenders set the rate you are offered based on your loan and credit.
What does it mean that two members voted for a hike?
It shows that some officials see inflation as the bigger risk. The statement says inflation remains elevated. A dissent does not change rates by itself, because the majority decides. It is a clue that a future increase is still possible, but the Fed says its decisions depend on new information. Nobody can promise what happens in December.