US Federal Reserve holds interest rates steady, says it wants more inflation data

The US Federal Reserve held its benchmark interest rate steady on Wednesday, 28 October 2026. The decision was in line with market expectations, according to both the South China Morning Post and Reuters.

The Fed said it is waiting for more data on inflation before deciding its policy stance. It said its inflation goal is 2 per cent.

The decision followed a rate increase at the Fed's previous meeting, in September. It also came a week before the US midterm elections.

Vote and rate range

According to the South China Morning Post, the 12-member Federal Open Market Committee (FOMC) voted 10-2 to hold rates. The outlet reported that the target range for the federal funds rate stayed at 3.75 to 4.00 per cent. It also reported that the September increase was the Fed's first rate hike in three years.

These details come from one outlet. Vocemundi could not check them against the Fed statement or a second outlet.

The reports reviewed by Vocemundi do not identify the two members who dissented. They do not say whether those members favoured a hike or a cut. They also do not give the size of the September hike or the rate range before it.

Election context

According to the South China Morning Post, rising inflation and the cost of living have been a key issue in the midterm campaign. Reuters described the Fed as opting to delay any changes to borrowing costs until after the elections. That is Reuters' description of the timing. The reports reviewed by Vocemundi do not show the Fed linking its decision to the elections.

The reports also do not include current inflation figures. Their description of inflation as rising is not backed by data in the coverage reviewed.

What each side says

The Fed gave the need for more information as its reason for holding rates. "The accumulation of more information will help the committee determine the policy stance appropriate to ensure a timely return of inflation to the committee’s 2 per cent goal," the Fed said in its statement, as quoted by the South China Morning Post.

The reports do not include remarks from the Fed chair or any post-meeting press conference. They do not include the full Fed statement or any guidance on future rate moves. Only a short summary of the Reuters report was available for review, so its full contents could not be checked.

Analysis

The hold leaves several paths open. The Fed has tied its next steps to incoming inflation data, so future decisions could go in different directions depending on what that data shows. The 10-2 vote reported by the South China Morning Post could point to differing views within the committee, but the reports do not say which way the dissenters leaned. The timing, a week before the midterms, could draw political attention. However, the reports reviewed do not show the Fed linking its decision to the vote. The next inflation figures and the Fed's next statement may offer clearer signals.

Produced by the Vocemundi newsroom with AI assistance.