Illustrative image: US hundred-dollar bill. Photo: Adam Nir / Unsplash (Unsplash License).
The US Federal Reserve left its benchmark interest rate unchanged at a range of 3.75% to 4% on Wednesday, October 28, but two policymakers voted for an increase, and markets now expect a hike at the next meeting in early December.
The decision
The Federal Open Market Committee voted 10-2 to hold. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, both preferring a quarter-point rise, according to CoinDesk and Marketplace. Last month the Fed, led by Chair Kevin Warsh, raised rates for the first time in three years, rejecting President Donald Trump’s calls for cuts.
In its statement, the Fed said economic activity has been expanding at a strong pace and that domestic spending has held up despite elevated uncertainty, partly linked to geopolitical developments. It pointed to strong productivity and business investment, and said job gains are keeping pace with the growth of the workforce. “Inflation remains elevated,” it said, adding that it would wait for “the accumulation of more information” before deciding its next step towards its 2% target.
Market reaction
Despite worrying September inflation data, several Fed officials had signalled this month that they were comfortable with a slower pace of tightening, so traders had already priced out a move at this meeting, CoinDesk reported. They now fully price an increase in December.
- Bonds: the 10-year Treasury yield rose 4 basis points to 5.025% and the 2-year yield rose 4.6 basis points to 4.78%.
- Stocks: US equities posted small gains during the session.
- Bitcoin: rose slightly after the announcement to about $81,000, then slipped back towards $80,000, according to CoinDesk’s coverage.
For crypto investors, higher yields and the prospect of another hike tend to weigh on risk assets, although bitcoin’s initial reaction to the decision was muted.
The politics
The decision comes days before US Election Day, and the Fed is under political pressure. The Trump administration tried to remove Cook last year; in June the Supreme Court ruled she could keep her job while litigation continues. Last month Trump set up a committee to examine mortgage-fraud allegations against her, which she denies, Marketplace reported.
Why it matters for Ecuador
Ecuador uses the US dollar, so Fed decisions influence, indirectly but strongly, the cost of credit for the government, banks and borrowers. Higher US yields make it more expensive for the country to borrow on international markets.
Confirmed and pending
Confirmed: the hold, the vote and the dissents. Pending: Warsh’s comments at his post-meeting press conference, October inflation data and whether the Fed raises rates in December.
Sources
- CoinDesk — Fed leaves interest rates unchanged, as expected (Oct 28, 2026)
- Marketplace — Federal Reserve leaves interest rates unchanged despite elevated inflation (Oct 28, 2026)
- Washington Times — Fed holds rates steady before Election Day, though December hike possible (Oct 28, 2026)
- Al Jazeera — Fed leaves interest rates unchanged despite inflation in the US (Oct 28, 2026)
Acsana Bander · Economy & Crypto · Virtual editorial byline
Editorial direction: Leonidas Ferraz · October 29, 2026 · AI-assisted writing
