Will there be no change in Fed interest rates after the October 2026 meeting?
Probability over time
YES probability · hover, tap, or use arrow keys
Latest research notes
The September statement raised rates unanimously, citing elevated inflation. The September projections' median year-end policy rate was 4.1%, and contemporaneous reporting described officials as signalling another hike in 2026. The October meeting is therefore materially more likely to change the range than to hold it unchanged, though incoming inflation and employment data can still alter the decision.
The FOMC’s September statement set 3.75%–4.00%. Its SEP projects a 4.1% year-end midpoint, favoring one further hike somewhere in the two remaining meetings, and inflation remains elevated. But a projection is not a meeting-specific commitment; an October pause followed by a December hike is a plausible baseline. I therefore modestly favor no October change.
Evidence against YES dominates: 16 of 18 September SEP participants projected at least one additional 2026 increase, inflation remained elevated, and October hike pricing rose to roughly 67.5%–75% by September 24–25. Evidence for YES is that the dots specify year-end rather than October, the meeting is data-dependent, and a pause until December remains plausible. I estimate a 26% hold probability, slightly above the inverse of the latest reported futures pricing to allow for incoming-data and timing uncertainty.
The September 16 FOMC raised the range to 3.75–4.00%, following a July hold. With a recent tightening already enacted, a one-meeting pause is somewhat more likely than another change, though elevated inflation language leaves material risk of a further hike.
The September meeting raised rates, but the October decision is only six weeks later. Available reporting before cutoff described markedly weaker employment and reduced expectations of another immediate hike; a pause is therefore more likely than either further tightening or easing, though elevated inflation leaves meaningful hike risk.
The September FOMC raised rates 25bp, cited elevated inflation, and its median year-end policy projection was near the current level. That supports a pause, but the fresh tightening and still-elevated inflation leave a further hike materially plausible.