Federal Reserve Holds Rates Steady as Chair Warsh Emphasizes Inflation Risks

The Federal Reserve's 12-member policy committee decided on Wednesday, Oct. 28, to keep its key interest rate unchanged, marking a pause after a 25-basis-point hike in September 2026. In a post-meeting statement the Fed noted that inflation remains elevated and that maintaining the current stance will allow the "accumulation of more information" to guide actions aimed at returning inflation to the 2% target.

Fed Chair Kevin Warsh addressed reporters shortly after the decision, saying the central bank's policies are beginning to show impact and underscoring the responsibility to keep inflation down. The press conference began at 12:00 AM IST (2:30 PM ET), providing a view of the Fed's economic assessment and outlook.

The decision comes amid persistent price pressures, especially in energy and groceries, and comes six days before the U.S. midterm elections, a timing that typically discourages major policy shifts. Markets are expected to remain cautious following the announcement, with analysts noting that the pause may reflect both the inflation outlook and the political calendar.