Federal Reserve Maintains Key Interest Rate at 5.25%-5.50% Following September Hike

The Federal Reserve held its key interest rate steady at 5.25%-5.50% for the second consecutive meeting, following a quarter-point increase in September 2026. The decision was made during the FOMC meeting on October 28, 2026, in Washington, D.C., with participants from the Federal Reserve Board and regional Federal Reserve Banks. The Fed emphasized that inflation remains on track to reach the 2% target and that the labor market continues to show strong employment gains and elevated wage growth. The FOMC statement released after the meeting indicated that the Fed would continue to monitor inflation and labor market developments closely. The decision was widely anticipated by financial markets, with traders closely watching for signals about future rate adjustments. The Fed’s statement also included updated economic projections for inflation and growth, which were communicated through a summary of economic projections.