Fed holds at 3.75%–4.00% after September hike; split vote keeps December in play

The Federal Reserve left its benchmark rate unchanged on Oct. 28, six weeks after its first increase in over three years. Two officials voted for another quarter-point hike.

In this brief: 4 sections 2 min read

- Federal funds target range held at 3.75% to 4.00%
- Vote was 10–2; the Sept. 16 hike to this range was 12–0
- The statement said inflation remains elevated and the Committee will gather more data before its next move
- Governor Lisa D. Cook and Cleveland Fed President Beth M. Hammack voted against the hold
- Both preferred raising the range by 0.25 point at this meeting
- Two hawkish dissents signal pressure for tighter policy if inflation stays high
- Savings APYs tend to follow the fed funds rate, so a hold leaves them roughly where they are
- Fortune reports some high-yield savings accounts paying 4.00% to 5.00% APY
- Banks adjust deposit rates gradually, so watch for moves after the December meeting
- Fortune's Oct. 28 roundup lists top CD rates up to 5.05% APY
- A CD locks its APY for the full term
- If the Fed hikes in December, new CDs could pay a bit more, so locking now trades a possible bump for certainty

Read full analysis on federalreserve.gov

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