Fed Chair Warsh holds press conference on interest rate decision

On October 28, 2026, the Federal Reserve decided to keep interest rates unchanged at 3.75%-4%, despite elevated inflation and a looming midterm election. This decision was widely expected by markets and reflects the central bank's cautious approach amid conflicting economic data points, including bottoming-out consumer sentiment and rising bond yields. The Fed had raised rates for the first time in three years last month due to inflation pressures caused by the Iran war, which has led to spikes in oil and gas prices. President Donald Trump criticized the Fed's rate hikes, demanding they lower interest rates quickly. The decision was made a week before the midterm elections where control of both the House and Senate were on the line. Voters blamed rising prices primarily on the Iran war and global tariffs imposed by the Trump administration.