For those who like to keep up with these things, the much-anticipated decision by the Federal Reserve on interest rates ahead of the midterm elections has arrived: it's keeping interest rates right where they are, meaning Americans looking for some relief on their mortgages, car loans, and credit cards will have to keep waiting.
The Fed voted 10-2 Wednesday to leave its key interest rate between 3.75 and 4 percent, but not everyone agreed with the decision. Two Fed officials, Cleveland Fed President Beth Hammack and Fed Governor Lisa Cook, wanted to raise rates another quarter-point to help bring inflation down.
BREAKING: The Federal Reserve voted Wednesday to keep benchmark interest rates on hold, opting to take a patient approach in its fight against inflation despite mounting evidence that price pressures are proving more nettlesome than policymakers had hoped. https://t.co/cp0obC6Znj
— CNBC (@CNBC) October 28, 2026
The Fed said that while the economy is still growing and Americans are spending money, inflation continues to be a problem.
Speaking at a press conference Wednesday afternoon, Fed Chairman Kevin Warsh acknowledged that Americans are still feeling the pinch after years of rising prices.
"Americans, of course, are still dealing with inflation that has been running above the committee's objective for close to six years," Warsh said. "It's our responsibility to get inflation down."
Warsh also explained that the Fed's September rate hike is already having an effect on the economy by making it more expensive for some businesses and individuals to borrow money. That gives officials a reason to wait and see what happens before they raise the rates again.
For now, though, the Fed is keeping things as they are, although another rate hike remains possible when officials meet again in December.