Fed holds interest rates at 3.75%-4%, signals more hikes amid high inflation
Federal Reserve keeps benchmark rates steady
The U.S. Federal Reserve left its benchmark interest rate unchanged on Wednesday, as most market participants expected. The target range for the fed funds rate, which is the interest rate banks charge each other for overnight loans, stayed at 3.75%-4.0%.
Even though the rate was not raised this meeting, the central bank made clear it still intends to take more action against inflation, which is currently running well above its 2% target.
Two officials wanted a rate increase
The decision to hold rates was not unanimous. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack voted against it, preferring to raise rates instead. The final vote was 10 in favor of holding and 2 against.
What the Fed said about the economy
According to the central bank's official policy statement, economic activity is expanding strongly, spending has been resilient, and productivity growth remains solid. The unemployment rate has not moved much recently.
However, the statement warned that inflation remains elevated. It said the Fed needs more information before deciding the right policy moves and promised to deliver price stability.
Markets react after the announcement
After the announcement, Bitcoin rose to about $81,000. U.S. stocks also gained a small amount during the session.
The yield on the 10-year Treasury note rose four basis points to 5.025%, and the yield on the two-year note rose 4.6 basis points to 4.78%. A basis point is one-hundredth of a percentage point.
What happens next
Despite mixed economic signals, Fed officials this month have expressed comfort with moving more slowly on rate increases. Market traders do not expect another change this meeting but fully expect a rate hike at the next meeting in early December.
Fed Chair Kevin Warsh was scheduled to hold a press conference at 2:30 p.m. ET on Wednesday.
What is confirmed
- The Fed held the fed funds rate at 3.75%-4.0% on Oct. 28, 2026.
- The vote was 10-2, with Cook and Hammack dissenting.
- Inflation remains above the 2% target, and the Fed wants a timely return to that goal.
- Markets expected a hold this meeting and a hike in early December.
- Bitcoin traded near $81,000 after the decision.
What remains unclear
- The Fed has not confirmed exactly how many more rate increases it will make or when they will happen.
- It is still early in the meeting cycle, and future policy could change depending on incoming data.
Why this matters for crypto and investors
Interest rates affect borrowing costs across the economy. When rates stay high, borrowing is more expensive, which can slow spending and investment. This influences how investors view risky assets, including cryptocurrencies.
Because the Fed is still focused on bringing inflation down, the path of future rate changes will depend on new economic reports rather than any fixed plan.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
