The Federal Reserve left the federal funds rate unchanged at 3.75%–4.00% at its October 2026 meeting, following a 25bps hike in September, which was the first rate increase since 2023, in line with market expectations. Policymakers said that economic activity is expanding at a strong pace. While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little. Inflation remains elevated. Policymakers also added that the accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the 2% goal. The Committee will deliver price stability.