Federal Reserve holds federal funds target range at 3-3/4 to 4 percent, IOER maintained at 3.90 percent
Event summary
On October 28, 2026 the Federal Open Market Committee maintained the federal funds target range at 3-3/4 to 4 percent. The Board of Governors issued an Implementation Note that maintained the interest rate paid on reserve balances at 3.90 percent, effective October 29, 2026. These are the Fed's official policy and operational rate announcements relevant to short-term funding markets.
CHRONOS Wire · October 28 · Alert 9
Publication details
- Published
- Updated
- Revision
- r1
- Source
- Board of Governors of the Federal Reserve System
Cliff Notes
- FOMC held target range at 3-3/4 to 4 percent on Oct 28, 2026; IOER maintained at 3.90 percent effective Oct 29, 2026.
U.S. Impact
Current impact
Elevated
Immediate effect is stabilization of policy stance: the federal funds target range remains 3-3/4 to 4 percent and IOER is maintained at 3.90 percent effective Oct 29, 2026, per the Implementation Note.
Potential impact
Elevated
Maintaining the target range at 3-3/4 to 4 percent and IOER at 3.90 percent is likely to leave near-term U.S. short-term borrowing costs and money market conditions broadly stable.
- Impact type
- Direct
- Confidence
- Moderate
U.S. Impact is an analytical assessment of the estimated current and potential effects on the United States. It is not a probability forecast.
ELI5: Plain-English Explanation
On October 28, 2026 the Federal Open Market Committee left its main interest rate target range unchanged at 3-3/4 to 4 percent. The Board of Governors also kept the interest rate paid on reserve balances at 3.90 percent, effective October 29, 2026. This means the Fed is maintaining its current policy stance and operational rate for reserves for now.
Why Urgent Level 3
This is the Fed's official policy decision and operational IOER rate published on October 28, 2026; market participants will price short-term funding around these figures in the immediate hours and days after release.
What Changed
The FOMC decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent, and the Board of Governors maintained the interest rate paid on reserve balances at 3.90 percent effective October 29, 2026.
What Is Genuinely New
Official FOMC statement and a Board Implementation Note published October 28, 2026 that announce the decision to maintain the federal funds target range at 3-3/4 to 4 percent and to maintain the interest rate paid on reserve balances at 3.90 percent effective October 29, 2026.
CHRONOS Bottom Line
FOMC held the federal funds target range at 3-3/4 to 4 percent on October 28, 2026; the Board set IOER at 3.90 percent effective October 29, 2026.
Uncertainties / Known Unknowns
Future committee actions depend on incoming inflation and labor market data; the Implementation Note does not specify other operational rate levels beyond IOER.
Detailed Analysis
The official FOMC statement confirms the Committee maintained the federal funds target range at 3-3/4 to 4 percent. A separate Board Implementation Note states the interest rate on reserve balances will be maintained at 3.90 percent, effective October 29, 2026. The releases provide the Fed's policy stance and the operational IOER rate but do not provide a vote tally or details on other operational offering rates in the provided excerpts.
Sources / Evidence
- 01Federal Reserve issues FOMC statementBoard of Governors of the Federal Reserve System2026-10-28
- 02Implementation Note issued October 28, 2026Board of Governors of the Federal Reserve System2026-10-28
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