Federal Reserve holds interest rates steady even as inflation remains high

October 28, 2026 / 2:02 PM EDT / CBS News

The Federal Reserve held interest rates steady on Wednesday after hiking borrowing costs in September to clamp down on inflation.

The central bank left the federal funds rate at a target range of 3.75% to 4%, keeping it unchanged after raising rates last month for the first time in three years.

Investors and Wall Street analysts widely expected the Fed to remain on hold in October, but many economists think policymakers will again raise rates at their last meeting of the year in December.

Fed Chairman Kevin Warsh will discuss the decision at a press conference at 2:30 p.m. EDT. Since taking the reins as Fed chief from Jerome Powell in May, Warsh has emphasized the Fed's commitment to restoring price stability and vowed to bring inflation back down to its 2% target.

However, the Iran war has kept global energy costs elevated, making it harder to shake stubborn inflation. Last month, the closely watched Consumer Price Index rose at a 3.7% annual rate; core inflation, which strips out volatile food and energy prices, rose 2.6% from a year ago. Both measures were above economists' expectations.

Solid economic growth and…

Original source: https://www.cbsnews.com/entertainment/