Fed holds its target range at 3.75% to 4%, with two votes for a hike
The Federal Open Market Committee left the federal funds target range at 3-3/4 to 4 percent on October 28; Lisa Cook and Beth Hammack dissented in favor of a quarter-point increase.
The Federal Reserve's policy committee kept the federal funds rate target range at 3-3/4 to 4 percent at its October 27-28, 2026 meeting. The vote was 10 to 2.
Governor Lisa D. Cook and Cleveland Fed President Beth M. Hammack dissented, preferring to raise the range by a quarter percentage point. The statement said economic activity is expanding at a strong pace and that inflation remains elevated.
The committee's next scheduled decision is in December.
Why it matters to investors
The fed funds rate does not set mortgage rates directly, but it drives short-term borrowing costs: HELOCs, construction loans and many hard money and bridge loans price off short-term rates. Two dissents in favor of a hike are a signal to stress test flips and BRRRR projects at higher financing costs with the fix and flip calculator and the BRRRR calculator.
Source: Federal Reserve FOMC statement, October 28, 2026
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