Investment News · 29 October 2026 · 4 min read
In short: The US Federal Reserve kept its benchmark interest rate at 3.75-4% on 28 October 2026, after raising it in September. The vote was 10-2: Governor Lisa Cook and Cleveland Fed President Beth Hammack wanted a 0.25 percentage point hike. The decision came six days before the US midterm elections on 3 November. Traders priced about an 84% chance of a hike at the next meeting on 8-9 December, per CME FedWatch data cited by Yahoo Finance.
Key numbers
| Indicator | Latest reading |
|---|---|
| US Fed policy rate | 3.75-4% (unchanged) |
| US 10-year Treasury yield | About 5.04%, up 5 basis points after the decision |
| US 2-year Treasury yield | About 4.7%, down 3.8 basis points |
| Rupee | Closed at 95.28 per dollar on 28 October, down 21 paise |
| Brent crude | About $114 a barrel |
| Spot gold | About $4,040 an ounce on 29 October morning, down nearly 1% |
| Sensex / Nifty (29 Oct, early trade) | About 73,337 / 22,723, slightly higher |
What the Fed said
- The Fed upgraded its view of US growth from “solid” to “strong” and said inflation remains above its 2% goal. US employers added 29,000 jobs in September and unemployment rose to 4.2%.
- Chair Kevin Warsh has avoided giving signals on future moves. Analysts quoted in news reports were split: Natixis’ Christopher Hodge called a December rise almost inevitable, while Northlight Asset Management’s Chris Zaccarelli said the Fed would probably have hiked this month if the meeting had not been so close to the elections.
- The Fed also said it will hold fewer policy meetings from 2027; it has not yet confirmed the new number, as reported.
What it means for you
- Rupee and imports: US bond yields near 5% make dollar assets attractive. That has pulled money out of emerging markets like India and weighed on the rupee, which is near 95 per dollar. A weaker rupee raises the cost of foreign travel, overseas education and imported goods.
- Foreign investors: Foreign portfolio investors (FPIs) have sold over ₹3 lakh crore of Indian shares in 2026, as reported in October, citing high US yields, costly crude and the weak rupee.
- Home loans: The Fed does not set Indian loan rates, but its stance affects the rupee and the RBI’s choices. RBI’s next policy decision is due in December.
- Gold: Gold fell slightly after the decision, as higher rates make non-interest-paying assets less attractive. Indian gold prices also move with the rupee.
- NRIs: A weaker rupee means each dollar sent home buys more rupees.
- Long-term SIP investors need not react to one meeting. Check your savings plan and keep an emergency fund in place.
Dates to watch
- 3 November: US midterm elections for Congress. Results and any market reaction will be reported factually here; Koshfin does not predict outcomes.
- 8-9 December: Next Fed meeting, with updated projections.
- December: RBI’s monetary policy decision.
Read our preview: Fed meeting and US midterms: what Indian investors should know.
Sources
- Yahoo Finance: Fed meeting live updates, 28 October 2026
- Nation Thailand: US Fed holds rates at 3.75-4% after October 28 vote
- Raisin: Fed holds interest rates at 3.75%-4.00%
- The Shillong Times: Rupee falls 21 paise to close at 95.28
- Goodreturns: Gold and silver rates today, 29 October 2026
- Business Standard: Stock market live, 29 October 2026
- Whalesbook: FPIs pull ₹44,166 crore in October; 2026 outflows cross ₹3 lakh crore
This is a news summary for education, not investment advice. Figures are as reported on or before 29 October 2026; check official sources before making decisions.