The Federal Reserve meets October 27–28, 2026, and announces its rate decision on the 28th. Its target range is now 3.75%–4.00% after a quarter-point hike in September. Most Fed officials said in the minutes that another increase would likely be appropriate by year end, but nothing is decided until the vote. A quarter-point move would add about $12.50 a year per $5,000 on a variable-rate card.
Key takeaways
- The Fed's next decision is October 28, 2026, the second day of its October 27–28 meeting. The last meeting of 2026 is December 8–9.
- The target range is 3.75%–4.00% after a 12–0 vote to raise it a quarter point on September 16. In July the Fed held rates in a 9–3 vote.
- In the minutes, most participants said another increase would likely be appropriate by year end. They also said future decisions depend on incoming data.
- The bank prime loan rate is 7.00% and the average savings account pays only 0.38%, so rate changes reach borrowers faster than savers.
- A fixed-rate mortgage does not change when the Fed moves. Variable-rate debt, such as many credit cards and home equity lines, can.
The Federal Reserve meets next week, and its decision can change what you pay on some loans and earn on some savings. The meeting runs October 27–28, 2026, and the decision comes out on the 28th.
Here is where rates stand today, what Fed officials have said about what comes next, and what a quarter-point move would mean in dollars. We cannot tell you what the Fed will decide. Nobody can until the vote.
Where are interest rates right now?
The Fed’s main tool is the federal funds rate. That is the rate banks charge each other for overnight loans. The Fed sets a target range for it. On September 16 the committee voted 12–0 to raise the range by a quarter of a percentage point, to 3.75%–4.00%.
At the July meeting, the Fed kept the range at 3.50%–3.75% in a 9–3 vote. The three who disagreed wanted a quarter-point increase.
The Fed’s daily rate report, released October 21, shows where other key rates sit:
| Rate | Latest value | Date |
|---|---|---|
| Effective federal funds rate | 3.88% | Oct. 20, 2026 |
| Bank prime loan rate | 7.00% | Oct. 20, 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 that many banks use for variable-rate loans. The Fed defines it as the rate posted by a majority of the top 25 U.S. banks. Right now it is 3 points above the top of the Fed’s range.
What have Fed officials said about what comes next?
The best clue is the minutes of the September meeting, published October 7. They say most participants thought “another increase in the target range for the federal funds rate would likely be appropriate by year end.” They also stressed that future decisions would depend on new information.
The minutes say participants saw the risks to inflation as skewed to the upside, and they judged the job market as stable and close to maximum employment.
The Fed’s September projections point the same way. Officials’ median projection for the federal funds rate at the end of 2026 is 4.1%. That is the middle of the range, and today’s middle is 3.875%. So the median projection works out to about one more quarter-point step.
“By year end” includes the December 8–9 meeting. That is why the answer to “Will the Fed hike in October?” is a real unknown.
What would a quarter-point move cost or earn you?
These are illustrations, not predictions. Each one multiplies a balance by a 0.25-point change (0.0025) over one year.
| Example | Math | Change per year |
|---|---|---|
| $5,000 variable-rate credit card balance | $5,000 × 0.0025 | $12.50 more |
| $50,000 home equity line of credit (HELOC) | $50,000 × 0.0025 | $125 more |
| $20,000 variable-rate loan | $20,000 × 0.0025 | $50 more |
| $10,000 in savings, if the bank passes it all on | $10,000 × 0.0025 | $25 more |
A half-point move would double each number. The savings line is the “if” one. Banks decide what they pay, and the average savings account pays 0.38%. On $10,000, that is $38 a year ($10,000 × 0.0038). A 12-month CD at the 1.76% average would pay $176 on the same $10,000 ($10,000 × 0.0176).
So the gap between what the average saver earns and what a borrower pays is wide, and a quarter point does not close it.
Which of my debts can change?
It depends on how your rate is set:
- Fixed-rate mortgage, car loan or student loan: No change. Your rate was set when you signed.
- Credit cards: Many have a variable rate tied to an index such as the prime rate. Check your cardholder agreement. Our credit card payoff calculator shows how a rate change affects your payoff time.
- HELOC or adjustable-rate mortgage: These often reset based on an index. Look for the “index” and “margin” in your loan documents. Our HELOC calculator can test a higher rate.
- New mortgages: Lenders, not the Fed, set these. The Fed’s moves and mortgage rates are separate numbers.
What happens after October 28?
If the Fed holds the range at 3.75%–4.00%, existing rates stay about the same for now, and the December 8–9 meeting becomes the next decision point. If it raises the range to 4.00%–4.25%, rates tied to the prime rate can rise, and some savings rates may rise too, though banks decide when and by how much.
Either way, the Fed statement and press conference will say how officials see the next steps. The October meeting is not one of the meetings with new economic projections.
What to do now
- List your variable-rate debts. Look at your card statements and loan documents for the words “variable,” “index,” or “prime.”
- Test a higher rate. Add 0.25 and 0.50 points to each rate and see the monthly cost. Use the calculators above, or multiply your balance by 0.0025.
- Pay down the most expensive balance first. Even a small extra payment on a high-rate card saves interest every month.
- Check what your savings earn. If your account pays near the 0.38% national average, compare other accounts and certificates of deposit. Use our savings calculator to see the difference.
- Don’t change fixed-rate loans because of the meeting. Their rate and payment stay the same.
- Read the announcement on October 28. Check the Fed’s statement for the new range, then recheck the numbers above.
This article is general information, not personal financial advice.
Frequently asked questions
When is the next Fed meeting?
The Federal Reserve's calendar lists the next meeting as October 27–28, 2026, with the decision on October 28. The final meeting of 2026 is December 8–9. The calendar shows the December meeting is the one tied to a new set of economic projections, while the October meeting is not.
Will the Fed raise interest rates in October 2026?
Nobody knows until the vote. In the September minutes, most participants said another increase would likely be appropriate by year end, and they stressed that each decision depends on new data. Year end includes the December meeting, so the Fed could act in October, December, or both. Plan for a range of outcomes.
What is the federal funds rate right now?
The Fed's target range is 3.75% to 4.00%, set on September 16, 2026. The effective federal funds rate, the rate banks actually paid each other, was 3.88% every day from October 14 to October 20, according to the Fed's H.15 report. The target is a range, and the effective rate lands inside it.
Does the Fed raise my mortgage rate?
Not if you have a fixed-rate mortgage. Your rate and payment stay the same for the life of the loan. The Fed does not set mortgage rates, lenders do. A rate that can change, such as an adjustable-rate mortgage, depends on your loan terms, so check your paperwork to see how your rate is set.
How does a Fed rate hike affect my savings?
It can raise what banks pay, but not automatically or by the same amount. The FDIC's national average savings rate was 0.38% on October 19, 2026, far below the Fed's range. Banks choose their own rates, so online accounts and certificates of deposit are where you will usually see differences. Compare offers instead of waiting.