Multiple forces keep inflation stubbornly above Fed's 2% target
Inflation persists above the Fed's 2% target due to energy shocks, AI investment costs, and elevated consumer expectations.
Event / Economy
US Federal Reserve Policy 2026
Federal Reserve monetary policy decisions and economic outlook for 2026, including interest rate adjustments, inflation management, and economic forecasting.
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33 articles0 articles
2026-08-29 to 2026-10-31 · UTC publication dates
Coverage begins 29 Aug, 01:04 UTC
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What happened
SK Hynix reports record quarterly operating profit of 83.3 trillion won
SK Hynix reported a record operating profit of 83.3 trillion won ($62.8 billion) for the latest quarter, nearly seven times higher than a year earlier and above market estimates. Its shares rose sharply in Seoul on the day of the Fed decision.
Fed statement says inflation remains elevated while economic activity expands
The post-meeting statement said inflation remains elevated and economic activity is expanding at a strong pace. It cited resilient domestic spending, strong productivity growth, robust capital investment, and job gains that have kept pace with the workforce.
Trump sets up committee to examine mortgage fraud allegations against Lisa Cook
In September 2026 President Donald Trump set up a committee to examine allegations that Fed Governor Lisa Cook committed mortgage fraud. Cook has denied the allegations. This was a renewed effort to remove her from the Board.
US consumer prices rise 3.7% year over year in September 2026
US consumer prices rose 3.7% from a year earlier in September 2026, up from 2.4% in February 2026, just before the Iran war. The consumer price index rose 0.3% month over month in both August and September.
S&P 500 edges up ahead of the Fed decision, near its all-time high
The S&P 500 rose 0.2% in morning trading on the day of the Fed decision, within about 1% of its all-time high set earlier in October 2026.
US economy forecast to grow 3% in July-September quarter
US economic growth for the July-September 2026 quarter is forecast to reach 3%, up from 2.2% in the April-June quarter. The government is scheduled to publish the figure on Thursday.
Federal Open Market Committee votes 10-2 to hold rates steady
The Federal Open Market Committee voted 10-2 to leave the federal funds rate unchanged. Two members dissented, each favoring a 25-basis-point increase.
Supreme Court rules Lisa Cook may keep her Fed post during litigation
In June 2026 the Supreme Court ruled that Fed Governor Lisa Cook could keep her job while litigation over her removal by the Trump administration continued.
Brent crude rises 1.8% to $111.33 a barrel
Brent crude, the international oil benchmark, rose 1.8% to $111.33 a barrel amid continued uncertainty over developments in the Middle East.
South Korea's Kospi closes up 6.6% at 6,012.44
South Korea's Kospi index closed at 6,012.44 after rising 6.6%, led by a surge in SK Hynix shares.
Houthi rebels attack a major Saudi Arabian refinery
Iran-backed Houthi rebels attacked a major refinery in Saudi Arabia during the week of the Fed decision, contributing to higher oil prices.
Federal Reserve keeps federal funds rate unchanged at 3.75% to 4%
The Federal Reserve held its benchmark federal funds rate steady in the target range of 3.75% to 4% at its October 2026 meeting, after raising the rate by 25 basis points in September.
Fed Chair Kevin Warsh states the inflation target is 2% measured by PCE
Fed Chair Kevin Warsh said the Fed has no soft or implicit inflation target. He stated the price stability target is 2%, as measured by the personal consumption expenditures (PCE) price index.
Average 30-year US mortgage rate reaches 7.4%, a three-year high
The average 30-year mortgage rate reached a three-year high of 7.4% earlier in October 2026 before slipping somewhat. Higher mortgage rates have made buying a home unaffordable for an estimated 5 million additional Americans since the start of 2026.
Futures markets price in a Fed rate hike in December 2026
Wall Street investors had priced in a federal funds rate hike at the Fed's December 2026 meeting, according to futures market pricing.
10-year Treasury yield stands at 4.99% after topping 5.30% earlier in October
The yield on the 10-year Treasury was 4.99% on the morning of the decision. It had earlier in October reached above 5.30%, its highest level since 2002, before pulling back.
Lisa Cook and Beth Hammack dissent in favor of a quarter-point rate hike
Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack voted against holding rates steady and in favor of raising the federal funds rate by 25 basis points. It was Cook's first dissent since she joined the Board of Governors in 2022.
US unemployment rate stands at 4.2%
The US unemployment rate was 4.2% at the time of the decision, while hiring has been sluggish.
Fed announces FOMC will hold eight meetings per year starting in 2027
Starting in 2027, the FOMC will hold eight meetings per year. One 2027 meeting will focus exclusively on broad monetary policy strategy, with no rate vote or policy statement anticipated. Warsh said 2028 is expected to include two strategy meetings and six policy meetings.
US midterm elections take place six days after the Fed decision
The Fed's decision came six days before the US midterm elections. The campaign has focused heavily on cost of living and affordability concerns.
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2 alternative perspectives
Fed signals quarter-point hike, projects 4.1% rate by year-end
Fed projects 4.1% rate by year-end with another hike expected, balancing softer employment against cooling inflation.
Federal Reserve raises benchmark rate to 3.9% amid economic crosswinds
Federal Reserve raises rates to 3.9% amid softening job growth and elevated inflation.
September job gains disappoint as unemployment climbs to 4.2%
September's weak 29,000 job gains and rising 4.2% unemployment signal labor market softening.
Retail sales surge in August, defying economic headwinds expectations
August retail sales exceeded expectations, signaling consumer spending resilience amid inflation and energy cost pressures.
Gasoline prices hit $4.43 as energy costs weigh on consumer mood
Elevated gasoline and oil prices weaken consumer sentiment amid stubborn inflation.
Market shifts rate-hike odds as inflation data cools expectations
Rate-hike odds shift sharply lower after August PCE inflation disappoints on the downside.
August PCE inflation eases below expectations, signaling cooling price pressures
August PCE inflation fell to 3.4%, beating expectations and easing inflation concerns.
Iran conflict began February 28, 2026 following military strikes
Iran war began February 28, 2026; costs exceed $30 billion with significant aircraft losses and elevated oil prices.
Kennedy Center closure sparks political standoff over Trump naming
Kennedy Center faces closure after judge blocks Trump naming; Trump threatens to cancel renovation.
Homebuyers and sellers grapple with nearly $2 billion in annual junk fees
Junk fees costing homebuyers and sellers $2 billion yearly compound housing affordability pressures amid rising interest rates.
White House accepts Federal Reserve's latest interest rate decision
White House accepts Federal Reserve's rate decision, signaling policy alignment with the central bank.