Fed hits pause on interest rates

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Business & Economy Fed hits pause on interest rates by Max Rego - 10/28/26 6:47 PM ET Link copied by Max Rego - 10/28/26 6:47 PM ET Link copied NOW PLAYING Close Thank you for signing up! Subscribe to more newsletters here The latest in politics and policy. Direct to your inbox. Sign up for the Business and Economy newsletter Subscribe Welcome to The Hill’s Business & Economy newsletter {beacon} Business & Economy Business & Economy The Big Story Fed holds rate steady ahead of midterms Federal Reserve officials held interest rates steady Wednesday despite stubborn inflation. © Mark Schiefelbein, Associated Press The central bank’s Federal Open Market Committee (FOMC) voted 10-2 to keep the benchmark federal funds rate range at 3.75 percent to 4 percent. “The committee believes that the accumulation of more information will help it determine the policy stance appropriate to ensure a timely return of inflation to the 2 percent goal,” Fed Chair Kevin Warsh told reporters, reiterating the FOMC’s statement. Fed board of governors member Lisa Cook and Federal Reserve Bank of Cleveland’s president Beth Hammack dissented in favor of a quarter-point increase. Hammack also backed a rate hike in late July, joining two of her colleagues in the minority when the central bank kept rates steady. Wednesday’s decision came six weeks after officials raised rates by a quarter point, the first hike in more than three years. Inflation has risen this year amid the Iran war, creating a difficult set of circumstances for President Trump and the GOP this midterm cycle. Warsh said Wednesday he has “started to see some changes” in financial and credit conditions since the Fed raised rates in September. “They have tightened for some businesses and households, much as we would expect,” he added. “Market participants are becoming somewhat more discerning in their capital allocations.” But the Fed chair noted he was “unwilling and unable” to call financial conditions “tight,” while arguing they are headed “in the direction of achieving a longer or durable period of economic growth and price stability.” Traders were overwhelming anticipating a hold, pricing in a 92.8 percent chance of the FOMC keeping rates steady as Wednesday afternoon, according to the CME FedWatch tool. Read more at TheHill.com. Welcome to The Hill’s Business & Economy newsletter, I’m Max Rego — covering the intersection of Wall Street and Pennsylvania Avenue. Did someone forward you this newsletter? Subscribe here. Essential Reads Key business and economic news with implications this week and beyond: Kalshi defends Platinum program against scrutiny from Democrats Kalshi argued Tuesday that its VIP program and platform are “fundamentally different” from those offered by sportsbooks, after several Democratic lawmakers expressed concerns over loyalty programs at both prediction markets and sportsbooks. Full Story Silicon Valley braces for firestorm of Dem scrutiny in 2027 Silicon Valley is bracing for a firestorm of scrutiny should Democrats take control of Congress next year, underscoring how the industry’s efforts to get on President Trump’s good side last year became a political liability. Full Story House Democrat: Paper ballots protect against Musk’s potential election hacking Rep. Jim Himes (D-Conn.), the ranking member on the House Intelligence Committee, said Wednesday that the use of paper ballots prevents hacking from tech mogul Elon Musk, who is supporting Republicans this election cycle. Full Story Treasury sanctions North Koreans, Russians for alleged IT fraud The Treasury Department on Wednesday sanctioned 10 individuals and one entity involved in an alleged scheme to defraud American businesses to benefit the North Korean military. Full Story The Ticker Upcoming news themes and events we’re watching: The Bureau of Economic Analysis will release personal consumption expenditures price index data for September at 8:30 a.m. EST on Wednesday. In Other News Branch out with more stories from the day: GOP election losses could scramble year-end funding fight A bruising midterm election for Republicans could complicate Congress’s next government funding fight, as lawmakers return to Washington facing uncertainty over how President Trump will respond to potential GOP losses. Full Story Good to Know Business and economic news we’ve flagged from other outlets: The midterms may revive a dying brand: The oil-state Democrat (Politico) Some BP board members favor breakup of $129 billion oil giant (Semafor) Drug middlemen will soon have to share details on how they are paid (Wall Street Journal) What Others are Reading Top stories on The Hill right now: Right-wing activist James O’Keefe charged with unlawful voting, identity theft Conservative influencer James O’Keefe was charged Wednesday in Minnesota after he and fellow right-leaning commentator Cam Higby misrepresented themselves using registered voters’ names at polling places during the state’s primary election in August. Read more Republicans rip Peltola over report her campaign recruited second Sullivan Republicans are blasting Alaska Senate candidate Mary Peltola (D) over reports her campaign recruited one of her midterm opponents, Daniel J. Sullivan Jr., to counter incumbent Sen. Dan Sullivan’s (R) reelection bid. Read more What People Think Opinions related to business and economic issues submitted to The Hill: Politicized debanking was real all along: States can help stop it from returning Why relying on prediction markets in the elections may not be a safe bet You’re all caught up. See you tomorrow! Add as preferred source on Google Tags Kevin Warsh Lisa Cook Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. 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