On October 28 the Federal Reserve left its benchmark rate at a target range of 3.75% to 4%. The vote was 10-2. Cleveland Fed President Beth Hammack and Governor Lisa Cook preferred a quarter-point increase. The hold followed September’s quarter-point hike, which Fox Business reported was the first increase since July 2023.
Chair Kevin Warsh said inflation remains above the 2% goal and that there is no softer target. In the Fed’s H.15 release dated October 30, the effective federal funds rate was 3.88% on each day from October 23 to October 29, and the bank prime rate stayed at 7%. The 10-year yield was 5.05% on October 28 and 4.98% on October 29. CNBC reported that on Friday it was 4.929%, down 6 basis points.
An unchanged target does not reset a fixed-rate mortgage or an existing card agreement. It can affect new loans, and variable-rate credit, only if lenders change their offers. Holding the range makes another immediate increase less likely than the hike two officials wanted, but it is not a cut. Prime did not move in this table.
Does the Fed’s hold lower a fixed payment you already have? No change to an existing fixed payment was announced. The new fact is an unchanged 3.75% to 4% target, with the reported prime rate still at 7%.