On October 28, 2026, the Federal Reserve kept its key interest rate where it was: the target range for the federal funds rate stays at 3.75% to 4%. This page explains in plain words what that rate is, what the Fed said, and how it can reach the rates on your credit card, savings and mortgage. Facts come from the Federal Reserve's statement and implementation note of October 28, 2026. General information only, not financial advice; we do not forecast rates.
What the Fed decided
- Federal funds rate: target range kept at 3.75% to 4% (FOMC statement).
- The vote: 10 to 2. The two members who voted against, Lisa D. Cook and Beth M. Hammack, wanted to raise the range by 0.25 percentage point.
- Other rates the Fed sets: interest on reserve balances stays at 3.90%, and the discount rate that banks pay to borrow from the Fed (the primary credit rate) stays at 4.0%, effective October 29, 2026 (implementation note).
What the Fed said about the economy
In its statement, the Fed's rate-setting committee (the FOMC) said economic activity is expanding at a strong pace, job gains have kept pace with the workforce and the unemployment rate has changed little. It said inflation remains elevated, that more information will help it decide the right policy to bring inflation back to its 2% goal in a timely way, and that it "will deliver price stability".
Fed decisions in 2026
| Meeting | Decision | Target range |
|---|---|---|
| January 27–28 | No change | 3.50%–3.75% |
| March 17–18 | No change | 3.50%–3.75% |
| April 28–29 | No change | 3.50%–3.75% |
| June 16–17 | No change | 3.50%–3.75% |
| July 28–29 | No change | 3.50%–3.75% |
| September 15–16 | Raised by 0.25 point | 3.75%–4.00% |
| October 27–28 | No change | 3.75%–4.00% |
The last 2026 meeting is December 8–9, and it comes with the committee's economic projections (FOMC calendar).
What the federal funds rate is
It is the interest rate banks charge each other for overnight loans. The Fed does not set the rate on your loans or savings, but it steers this overnight rate, and many other rates react to it.
What it can mean for your money
- Credit cards: most cards have a variable APR tied to an index, often the prime rate, so the APR changes when the index changes. Your card agreement and statement show your rate and how it is set (CFPB). Paying down a balance saves the same interest whatever the Fed does; see what your balance costs with the credit card payoff calculator.
- Savings accounts and CDs: banks and credit unions set their own rates, and those often follow the Fed's rate over time. A CD locks in its rate for its term. Compare offers with the high-yield savings calculator.
- Mortgages: 30-year fixed mortgage rates are not set by the Fed; they tend to move with the 10-year Treasury yield and with what markets expect. See this week's average on mortgage rates today. An adjustable-rate mortgage or a HELOC can change with its index.
- Car and personal loans: fixed-rate loans you already have do not change; new loans are priced by each lender.
Frequently asked questions
Did the Fed change interest rates on October 28, 2026?
No. It kept the federal funds target range at 3.75% to 4%, after raising it by 0.25 percentage point in September 2026.
When is the next Fed meeting?
December 8–9, 2026. The decision is announced at the end of the second day.
Will my credit card rate change?
If your card has a variable APR, it changes only when the index it is tied to changes. The Fed held its rate, so there is no rate change from this decision; check your statement for your current APR.
Does the Fed set mortgage rates?
No. Mortgage lenders set them. Fixed mortgage rates tend to move with long-term Treasury yields rather than with each Fed decision.
Will rates go up or down next?
No one knows for sure, and we do not publish forecasts. The Fed itself said it will decide based on the information that comes in.