Safeload Coverage
The Federal Reserve announced earlier Wednesday it would keep interest rates steady at the 3.75 percent to 4 percent target range. The vote was 10-2 to leave interest rates alone, with Lisa D. Cook and Beth M. Hammack dissenting.
During his press conference, Federal Reserve Chair Kevin Warsh said “economic activity is expanding at a strong pace” but uncertainty remains with geopolitical developments. At the same time, spending has been resilient.
Additionally, job gains have kept pace, and the unemployment rate has changed little.
“But, inflation remains elevated,” he said.
The committee believes the accumulation of more information will help give them the proper stance to return back to the 2 percent goal in a timely manner.
Moving Help® will explain why the Federal Reserve came to this decision, and what it means for homebuyers who are looking to buy or sell a house in the near future.
Who Voted for and Against This Policy Rate?
The Federal Open Market Committee’s vote was 10-2, with 10 members voting for the monetary policy rate to remain unchanged and to leave the target range for the federal funds rate at 3.75 to 4.0 percentage points.
Only Cook and Hammack voted against this policy rate. Cook and Hammack voted for a 1/4 percentage point increase at this meeting.
| Voting Member Name | How Did They Vote? |
|---|---|
| Kevin Warsh, chair | Yes |
| John C. Williams, vice chair | Yes |
| Michael S. Barr | Yes |
| Michelle W. Bowman | Yes |
| Lisa D. Cook | No |
| Beth M. Hammack | No |
| Philip N. Jefferson | Yes |
| Neel Kashkari | Yes |
| Lorie K. Logan | Yes |
| Anna Paulson | Yes |
| Jerome H. Powell | Yes |
| Christopher J. Waller | Yes |
Why No Increase to Interest Rates?
The committee wants more information to help the committee determine the policy stance. Most committee members believe another rate increase will be needed when the December meeting arrives. Warsh was asked why not raise rates now.
“Ensuring price stability, quashing inflation is not about some fixed individual date on a calendar,” he said.
Warsh and the committee want to have clear objectives and a monetary policy strategy. They also want to get back to the 2 percent target goal for inflation.
What Does the Future Hold?
The Federal Open Market Committee will hopefully receive information by the end of the year. During Warsh’s first press conference, he created five task forces. He gave them a deadline at the end of the year to deliver a report along with how the Fed can make better decisions.
He has had periodic check-ins with them, but he hasn’t seen anything close to a preview of a final report.
“Some, but not all of the groups will probably hit their deadline and turn their homework in on time,” Warsh said.
Warsh stressed the committee’s commitment to bring inflation down to its 2 percent target and the committee’s willingness to get there. He understands they haven’t gotten there yet. Although, he never answered exactly why policymakers didn’t act during this October meeting.
“If the crux of your question, is you haven’t delivered yet. You haven’t achieved price stability, you’re right. But we’re working on it,” Warsh said in response to a reporter’s question.
What Does This Mean for Home Mortgage Rates?
Because the Federal Reserve didn’t increase or cut interest rates, housing mortgage rates should continue to see rates possibly increase and tighten. The Fed increased rates by 1/4 percentage point back in September’s meeting for the first time since 2023.
Since that announcement, rates have steadily increased, but they have slightly dropped in recent weeks, according to Freddie Mac.
From Jan. 2, 2025, to Oct. 22, 2026, a 30-year mortgage rate has hovered anywhere between 5.98 percent to 7.40 percent, according to Freddie Mac. The rates have ranged from 6.95 percent to 7.40 percent since the last Fed meeting in September.
During the same time frame, a 15-year mortgage rate has hovered between 5.35 percent to 6.73 percent, according to Freddie Mac. The rates have been closer from 6.26 percent to 6.73 percent since the last Fed meeting in September.
Both 15- and 30-year interest rates saw a trend of rates increasing since the beginning of May and continue to slightly climb higher in July.
What Does This Mean for People Looking to Move?
Housing mortgage rates are still higher than they were pre-pandemic.
Housing mortgage rates for a 30-year loan and a 15-year loan are still lower than the peak 7.79 percent 30-year mortgage rate and 7.03 percent 15-year mortgage rate in late October 2023.
Despite all these recent policies and developments, it’s still a buyer’s market. In fact, “The U.S. is in the strongest buyer’s market on record,” according to Redfin.
Other Federal Reserve News
Warsh delivered some other news during his press conference. Here are some of the highlights that Moving Help gathered during his press conference.
How Many Times Will the Fed Meet in 2027?
The Fed will continue to meet eight times next year.
“We believe eight meetings is the right number for the FOMC,” Warsh said.
The difference for 2027 is one of those eight meetings will primarily focus “exclusively on broad monetary policy strategy.” They won’t vote on policy during that meeting.
The difference for 2027 is one of those eight meetings will primarily focus “exclusively on broad monetary policy strategy.” They won’t vote on policy during that meeting.
Then in 2028, the Fed will have two meetings dedicated toward broad monetary policy strategy.
One risk on meeting one less time is it could make the Fed more vulnerable or less nimble to make decisions and act quickly during rapid economic changes.
How Much Did the 2026 Midterms Influence Today’s Policy Announcement?
Warsh had a pretty quick and simple response to this question.
“Politics played no role in the decision.”
He went on to say that during the two-day meeting he didn’t hear an utterance or a “reference to politics, elections, what’s happening in the next week or so. I didn’t hear anything about it.”
The Fed’s independence is important, and it has been challenged in recent years about its ability to stay independent.
“I don’t believe it had any role in the decision, not just for me, but my colleagues around the room,” Warsh said.
Would the Fed participate in a White House Hearing on Lisa D. Cook’s Future?
The final question asked by the press was whether Warsh himself or the Fed itself would be involved in a hearing next week at the White House on Cook’s future and the allegations that have been made against her.
Warsh’s response was quick and simple.
“Not to my knowledge,” he said.
When Is the Next Federal Reserve Meeting?
The next Federal Reserve meeting is scheduled for Dec. 8-9.
You also can read previous recaps of the January, March, April, June, and September meetings.
