Fed keeps interest rates unchanged

The US Federal Reserve left its policy rate at 3.75% to 4% after its October 28, 2026 meeting, according to Mettis Global. Officials are weighing how rising energy costs, linked in the report to the war with Iran, could keep inflation elevated and hinder progress towards their 2% goal. Holding rates steady gives policymakers time to assess the conflict’s effects on the economy.

The report says another increase remains a possibility at the December meeting. Persistently high inflation and borrowing expenses are straining household budgets, particularly for lower- and middle-income consumers, while the unchanged decision is not expected to ease their costs immediately. The Fed’s benchmark influences credit card and other short-term borrowing charges; mortgage rates, CNBC notes, are more closely tied to inflation expectations and the wider economic outlook.