Fed holds rates at 3.75%-4.00%, leaving room for another hike

In short

• The Federal Reserve held its benchmark rate at 3.75%-4.00% on 28 October in a 10-2 vote.
• Lisa Cook and Beth Hammack dissented, each wanting a 0.25 percentage point rate increase.
• No December hike was promised, but investors widely expect one, according to NPR and ING Think.
• Bitcoin traded at $79,935, down 1.14% in 24 hours, according to InvestIn.News market data.

A 10-2 hold with room to hike

The Federal Reserve kept its benchmark interest rate at 3.75% to 4.00% on 28 October 2026, in a 10-2 vote that left room for another increase. Two policymakers, Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack, wanted a 25-basis-point increase, according to US News and Business Standard. The Federal Reserve is the US central bank, and its target range influences borrowing costs across the economy. The hold followed a September increase, the first rate rise in three years, according to MSN.

Why the Fed stayed cautious on inflation

The central bank said the economy is expanding at a strong pace and inflation remains elevated, according to ING Think. Chair Kevin Warsh told reporters that inflation is still too high, but he gave no commitment on another hike. NPR reported that investors widely expect the Federal Reserve to raise rates at its December meeting to fight stubborn inflation. ING Think noted that before the decision, only 2 basis points of a potential 25 basis point hike were priced in.

Bitcoin price, yields and market reaction

At the time of writing (01:37 UTC on 29 October 2026), Bitcoin traded at $79,935, down 1.14% in 24 hours, with a market value of $1.61tn, according to InvestIn.News market data. The total crypto market value stood at $2.65tn, down 0.74% over the same period, according to InvestIn.News market data. Treasury yields rose immediately after the announcement, then eased back towards 5% during Chair Warsh's press conference, according to ING Think. Futures trading had put the chance of a rate change at roughly one in ten, according to AInvest, and markets barely moved.

What crypto traders said on X

Crypto traders focused on dissent and the uncertain path. Milner86 (@heldersilva86) said on X that a rate hold is not automatically bullish for Bitcoin, while CubeFi (@xCubefi) called it a decision with no clear path. Aizen (@Aizen_Trades) said the dissent is the real story, and Warrior Community X (@WarriorCommunX) said all eyes are now on Chair Kevin Warsh and the December outlook. Alex DeWolf (@TrackNetWorth) said Bitcoin moved up 0.69% in the first 111 minutes after the event, the biggest move for its usual size.

What happens before the December meeting

Federal Reserve officials next meet in December, with two jobs reports and one inflation reading due before that decision, according to ING Think. The central bank gave no pre-commitment, saying future data will help determine the right policy stance. ING Think expects a December hike; a 25 basis point increase from the current 3.75%-4.00% range would take the target range to 4.00%-4.25%. That would be the next test for Bitcoin and crypto markets, where the open door to higher rates keeps pressure on risk assets.

Questions readers ask

Why did the Federal Reserve hold rates steady on 28 October?

The Federal Reserve kept its benchmark rate at 3.75% to 4.00% because inflation remained too high and the economy was still expanding at a strong pace. The 10-2 vote left room for another increase, with two officials seeking a 25 basis point hike.

Who dissented at the Federal Reserve's October 2026 meeting?

Fed governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, each preferring a 25 basis point interest rate increase, according to US News, Business Standard and ING Think.

What does the Fed hold mean for Bitcoin?

Bitcoin traded at $79,935, down 1.14% in 24 hours, according to InvestIn.News market data. Crypto traders on X said a rate hold is not automatically bullish, and the open door to another hike keeps downside risk for Bitcoin.

Our view

At InvestIn.News, we think a rate hold that keeps further hikes on the table is not cleanly bullish for Bitcoin. The 10-2 vote, with dissents from Lisa Cook and Beth Hammack, shows that the Federal Reserve's fight against inflation is not over. Chair Kevin Warsh said inflation remains too high and gave no pre-commitment to another increase, but he kept the December meeting live. That hawkish optionality, rather than the hold itself, is the key risk for crypto. Bitcoin was trading at $79,935, down 1.14% in 24 hours, according to InvestIn.News market data, and Treasury yields initially rose after the announcement. We do not think the Fed promised a December hike, so the downside pressure should not be overstated. Our view would shift if upcoming jobs and inflation data show price pressures cooling enough for officials to rule out further tightening.

— Ishu Aggarwal

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Ishu Aggarwal

What to watch: Federal Reserve officials next meet in December, with two jobs reports and one inflation reading due before that decision.