Federal Reserve Holds Benchmark Fed Funds Target Range at 4.75%-5.00% Amid Resilient Labor Data
Fed Chair underscores balanced risks to dual mandate, noting inflation progress alongside robust payroll additions and solid consumer demand.
By Dr. Evelyn Thorne, Ph.D. in Economics • Reviewed by Devon Patel, CFA • Updated November 4, 2026
Primary Source: Federal Open Market Committee (FOMC)
The Federal Open Market Committee concluded its two-day monetary policy meeting today, announcing a unanimous decision to maintain the federal funds target rate range at 4.75% to 5.00%.
Key Policy Takeaways
- Dual Mandate Balance: The Committee judged that risks to achieving its employment and inflation goals remain roughly in equilibrium.
- Balance Sheet Reduction: Quantitative tightening (QT) will proceed as scheduled, continuing monthly redemptions of U.S. Treasuries and agency mortgage-backed securities.
- Labor Market Resilience: Recent non-farm payroll releases demonstrate steady hiring, easing immediate recessionary concerns while preserving consumer purchasing power.
Institutional equity benchmarks rallied following the release, with the S&P 500 adding 0.6% and the 2-Year Treasury yield declining 4 basis points to 4.18%.
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