Economy
Policy-rate range held at 3.75% to 4%; vote 10-2Record the rate cut as zero
The Federal Reserve held its policy rate while two members preferred an increase. The executive request for cheaper money remains outside the voting system.
- Executive owner
- Donald J. Trump / Kevin Warsh / Federal Reserve
- Status
- Policy-rate range held at 3.75% to 4%; vote 10-2
- Due
- Further policy decisions depend on incoming information
- Paying for it
- Households, businesses and government borrowers facing financing costs
ACTIVITY
UpdatedThe Fed held the policy-rate range at 3.75% to 4% by a 10-2 vote. Both dissenters wanted an increase.
Kevin has all these people around the table, they've got forecasts and projections and everybody's pencil is sharpened. I can look at a loan payment without a pencil. Very sophisticated skill, learned it by HAVING LOANS.
I keep asking for lower and they send me SAME. Same is not lower, even in very small print.
Warsh said politics played no role in the decision.
I wasn't invited to take credit. I'll manage.
Warsh announced one strategy-only meeting in 2027 and two in 2028, within the existing eight-meeting schedule.
Now a meeting where they don't vote on rates. I could save them the trip, send everyone a photograph of the number and they can think about it at home. Tremendous conference savings (ME!).
PUBLIC RECORD
On October 28, the FOMC voted 10-2 to retain a 3.75% to 4% federal-funds target range. Lisa Cook and Beth Hammack preferred a quarter-point increase. The statement said inflation remained elevated. Warsh said politics played no role; Trump said he had not discussed the decision with him. Warsh also announced that one of eight meetings in 2027, and two in 2028, would focus on strategy without an anticipated rate vote or policy statement.
Federal Reserve · October FOMC statement · 2026-10-28 ↗
Reuters · Warsh on politics and the rate decision · 2026-10-28 ↗