The Federal Reserve maintained its target range at 3.75%-4.00% following the October 28, 2026 FOMC meeting, with two dissents favoring a 25-basis-point hike amid elevated inflation. Persistent price pressures, including September CPI at 3.7% year-over-year and PCE readings above 3%, combined with strong Q3 GDP growth near 3.4% and a resilient labor market featuring 4.2% unemployment, have shifted trader expectations toward additional tightening. Market-implied pricing from fed funds futures assigns roughly an 85% probability of a December 8-9 hike, reflecting concerns over broadening inflation from energy prices and geopolitical factors rather than any near-term easing path. Fresh September PCE data and October employment figures will shape the December dot plot and any revisions to the rate trajectory.