# Fed set to hold interest rates steady in last decision before midterms

- URL: https://talkfuse.com/story/fed-set-to-hold-interest-rates-steady-in-last-decision-before-midterms/
- Published: 2026-10-28T10:00:03+00:00
- Updated: 2026-10-28T11:38:27+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/business/2026/oct/28/fed-interest-rates-midterms
- Topics: Americas, Business, Economy, Elections, Politics, World

## Key points

- The Fed is expected to hold rates before the midterms.
- September inflation rose to 3.7%, above the 2% target.
- Officials may pause now but raise rates again later.

## Summary

The Federal Reserve is expected to keep interest rates unchanged at its final rate-setting meeting before next week’s US midterm elections. A pause would suggest officials are waiting to assess inflation, while the cost of living is a major concern for voters and could influence which party controls Congress.

The Fed raised rates last month for the first time since 2023, as annual inflation reached 3.7% in September, up from 3.4% in August and above its 2% target. Oil prices, driven higher by the conflict involving Iran and disruption to the Strait of Hormuz, have added to price pressures; crude briefly topped $117 a barrel this week. Some Fed officials see room to pause, though many economists expect another increase before year-end, and one economist cautioned that rate rises may do little to address inflation caused by supply disruptions.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.