Federal Reserve meets on October 27–28: what to know before the rate decision
Oct 26, 2026
The Federal Open Market Committee (FOMC), the US Federal Reserve's policy-setting body, meets on Tuesday and Wednesday, October 27–28, 2026. It is scheduled to announce its interest rate decision on Wednesday, October 28. US interest rates can affect a wide range of investments, including funds that track the S&P 500 such as CSPX.ETF and VUSA.ETF.
Where rates stand
At its previous meeting on September 15–16, the FOMC:
- raised the target range for the federal funds rate by 0.25 percentage point to 3.75%–4%
- voted 12–0 for the decision
- said that "economic activity is expanding at a solid pace" and that "inflation remains elevated"
- said that job gains "have kept pace with the workforce" and that the unemployment rate "has changed little"
Before September, the target range had been 3.5%–3.75%.
What is different about this meeting
According to the Federal Reserve's calendar, the October meeting does not include a Summary of Economic Projections, the set of forecasts for growth, inflation, unemployment and interest rates that the committee publishes four times a year. The next meeting with projections is on December 8–9.
What the Fed does
The Federal Reserve is the central bank of the United States. Its main goals are stable prices and maximum employment. The federal funds rate is the interest rate at which banks lend to each other overnight, and changes to it affect borrowing costs for households and businesses, including mortgages, loans and credit cards.
How interest rates can affect markets
Higher interest rates can make borrowing more expensive and may slow economic activity. They can also affect how investors value shares, because future company profits are worth less in today's money when rates are higher. Bond yields and currency exchange rates can also move after Fed decisions. The effect on markets depends on many factors, including what investors expected beforehand.
The same week
The Fed's decision comes in a busy week for markets. Microsoft and Alphabet are scheduled to report quarterly results on Wednesday after the US market close, and Amazon on Thursday.
How the decision is announced
The FOMC usually publishes its statement at 2:00 p.m. Eastern Time on the final day of the meeting, followed by a press conference by the Fed chair. The minutes of the meeting are published about three weeks later.
Recent decisions
The September increase followed two meetings in June and July at which the committee kept the target range unchanged at 3.5%–3.75%. A change in the target range is usually made in steps of 0.25 percentage point. The committee can also keep rates unchanged while changing the wording of its statement, which investors read closely for signals about future decisions.
Inflation and the 2% goal
The Federal Reserve aims for inflation of 2% over time. In its September statement, the committee said its decision would "support a timelier return" to this goal. Inflation measures, such as the consumer price index and the personal consumption expenditures price index, are among the data the committee considers.
What to watch
Key items include the decision on the target range, any change in the wording of the statement on inflation and the labour market, the vote count and any dissents, and comments at the press conference about future meetings.
Risks and uncertainties
Interest rate decisions and the Fed's statements can lead to sharp movements in share, bond and currency prices. The Fed's future decisions depend on economic data, which can change.
What this means for investors
For Investing.one users following funds such as CSPX.ETF or VUSA.ETF, the Fed's decision may be relevant. The information above is based on the Federal Reserve's published statement and calendar.
Sources
This is not investment advice. Your capital is at risk.
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