The Federal Open Market Committee kept its target range for the federal funds rate at 3-3/4 to 4 percent on Oct. 28, but the decision was not unanimous. Board of Governors member Lisa D. Cook and Cleveland Fed’s Beth M. Hammack voted against it, and each preferred a quarter-point increase. The vote was 10 to 2, the Federal Reserve said in a 2:00 p.m. EDT statement.
People who keep cash in savings accounts, certificates of deposit or Treasury bills, and anyone with a variable-rate loan, will want to know what a split vote means for the next move. The statement does not say whether the committee will raise, hold or lower rates at its next meeting. What it does show is that two of the 12 voting members thought the case for a hike was already strong enough on Oct. 28.
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The 10-2 vote
The statement says the committee approved its decision “by a 10 – 2 vote,” and it names only the two dissenters: “Voting against the monetary policy action were Lisa D. Cook and Beth M. Hammack, who preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting.”
A quarter-point increase, the size Cook and Hammack preferred, would have lifted the target range to 4 to 4-1/4 percent. The remaining ten voting members backed the decision to hold at 3-3/4 to 4 percent. The statement also says the committee continues to maintain ample reserves in the banking system.
The Federal Reserve’s list of 2026 committee members shows 12 voters: Chairman Kevin Warsh, Vice Chair John C. Williams of New York, five more members of the Board of Governors besides Warsh and Cook, and the presidents of the Cleveland, Minneapolis, Dallas and Philadelphia Reserve Banks. Cook sits on the Board of Governors, and Hammack represents Cleveland.
What the statement says about the economy
The committee describes the economy in strong terms. “Economic activity is expanding at a strong pace,” the statement says, and “domestic spending has been resilient” despite uncertainty it ties in part to geopolitical developments. It also says “Productivity growth is strong, and capital investment is robust.”
On jobs, the statement says “Job gains have kept pace with the workforce, and the unemployment rate has changed little.” Together, those lines describe an economy with strong output and steady hiring, which is the backdrop for the committee’s decision to leave the rate where it was.
Inflation, in the committee’s words
The inflation language is short. “Inflation remains elevated,” the statement says, and the committee adds that more information will help it set the policy stance needed to bring inflation back to its 2 percent goal in a timely way. The final sentence reads: “The Committee will deliver price stability.”
The statement does not explain why Cook and Hammack wanted a higher target range. The Fed’s calendar page says the minutes of regularly scheduled meetings are released three weeks after the policy decision, and the page does not yet list the minutes for the Oct. 27-28 meeting.
The next meeting and the savings question
The committee’s next scheduled meeting is Dec. 8-9, 2026, according to the Fed’s 2026 calendar, and that meeting includes a Summary of Economic Projections. Neither the statement nor the calendar says what the committee will do then. The two dissents both pointed toward a higher rate, and none pointed toward a lower one.
Anyone deciding where to put cash that has to stay safe can compare what an insured savings account pays against Treasury bills and other options at the current 3-3/4 to 4 percent target range, and revisit the choice after the December decision. An implementation note issued Oct. 28 accompanies the statement on the Fed’s site for readers who want the technical details.
Does the cash you can’t risk match the rate you need?
The committee’s own words, strong growth and elevated inflation, leave the rate path open, and two of its voters wanted a higher rate on Oct. 28. Savers with money they cannot put at risk have a choice to make about where it sits and how long it stays there.
“Make Your Savings Pay You” is an 11-page guide to insured places that pay more than a near-zero bank account, including high-yield savings for the cushion needed this year and Treasury bills from $100, which are free of state and local income tax. It also includes a ladder to copy, so money comes due on a schedule rather than all at once.
Get high-yield savings for the cushion and Treasury bills from $100 in Make Your Savings Pay You →
This article was produced with AI assistance and edited for accuracy against the sources linked above.
David M. Keller is a finance writer based in Columbus, Ohio, covering personal finance and consumer-focused economic topics. He earned his degree in journalism from Ohio University and began his career reporting on local business and economic trends for a regional media outlet. Since then, he has contributed to a variety of online publications, focusing on clear, practical coverage of topics such as cost of living, debt, and everyday financial decision-making.
