Fed Meets Oct. 27–28 After September Rate Hike

The Federal Reserve announces its next interest rate decision on Wednesday, October 28, 2026. It comes six weeks after the Fed raised its policy rate by 0.25 percentage points, to a target range of 3.75%–4.00%.

What happened

At its September 15–16 meeting, the Federal Open Market Committee voted 12–0 to raise rates. Its statement said that “inflation remains elevated” and that the move “will support a timelier return to the Committee’s 2 percent goal.”

Since then, new data has shown prices still rising. The Consumer Price Index rose 0.6% in September and 3.7% over 12 months, the Bureau of Labor Statistics reported on October 14. Gasoline rose 9.1% in the month and caused more than half of the increase. Core inflation, which leaves out food and energy, was 2.6%.

Why it matters

The Fed’s rate sets the starting point for many other rates. When it rises, borrowing gets more expensive and saving pays more:

• Credit cards and variable-rate loans usually follow within one or two billing cycles.
• New mortgages and car loans tend to cost more. On a $300,000, 30-year loan, one extra percentage point adds about $201 a month. Try it with your own numbers.
• Savings accounts tend to pay more, which helps cash keep up with inflation. See how inflation shrinks cash.

What’s next

The minutes of the September meeting say “most participants assessed that another increase in the target range for the federal funds rate would likely be appropriate by year end.” Officials also noted that “the longer energy prices remained elevated, the greater the risk” of broader price increases.

The Fed has two chances left this year: October 28 and December 8–9. The December meeting also brings new economic projections. New to the topic? Start with how interest rates work.