Fed Rate Decision (Oct 28, 2026): What Newcomers Should Watch
Llandora·Mis à jour 2026-10-14
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La réponse courte
The Federal Reserve announces its interest-rate decision on Wednesday, October 28, 2026, at 2:00 p.m. ET (press conference 2:30 p.m.), hours after the Bank of Canada's own announcement the same morning. The federal funds target going in is 3.75%–4.00%, after a 25-point hike in September. Markets broadly expect a hold — with the real question being December.
Why September's CPI changed the story
September CPI, released October 14, came in hot: 3.7% year-over-year (up from 3.4% in August), with core CPI at 2.6% (up from 2.4%). Both beat expectations. That re-acceleration is why the Fed hiked in September, and why most officials now signal one more hike is likely by year-end — the December 8–9 meeting is the base case, not October.
What it means for your money
Savings and CDs: banks move deposit rates with the fed funds rate. A hold keeps today's high-yield savings rates flat; a December hike would lift new CD rates within weeks.
Mortgages: 30-year fixed rates follow the 10-year Treasury yield more than the Fed's decision — they don't move one-for-one. But the Fed's direction steers where long-term rates head.
Credit cards: most US cards have variable APRs tied to prime, which moves in lockstep with fed funds. A hike shows up on your statement within one or two billing cycles.
Newcomers building credit: if you're rate-shopping for a first US credit card or auto loan, a hold decision means no sudden repricing — but December is the meeting to watch.
What to watch on October 28
The decision at 2:00 p.m. ET (hold is the ~86% consensus per CME FedWatch as of mid-October).
The statement's language on inflation — any shift toward December action.
Chair's press conference at 2:30 p.m. for guidance on the December meeting.
Questions fréquentes
Should I lock a mortgage rate before October 28?
Fixed mortgage rates won't jump on a hold. If you're closing soon, the December meeting matters more — discuss a rate lock with your lender.
Does the Fed decision affect Canada?
Indirectly: the Canada–US rate gap moves the USD/CAD exchange rate, which matters if you send money across the border.
Where can I check expectations live?
CME FedWatch and Kalshi track market-implied probabilities in real time.
Sources
Federal Reserve, FOMC calendars: https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
Morningstar, September CPI report: https://www.morningstar.com/economy/september-cpi-report-shows-inflation-37-annual-rate
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