Fed Holds at 3.75% to 4%; Prime Stays at 7.00%
· 2 min read
The Short Version
The Federal Reserve held its benchmark rate on October 28, 2026.
The prime rate stayed at 7.00 percent, so variable-rate financing tied to prime would generally not change because of this decision alone.
The Facts
The Federal Open Market Committee voted 10 to 2 to keep the federal funds target range at 3-3/4 to 4 percent.
Lisa D. Cook and Beth M. Hammack dissented. Both preferred a 1/4 percentage point increase.
The Committee said inflation "remains elevated."
The Fed's H.15 release shows the bank prime loan rate at 7.00 percent on each business day from October 27 through November 2, 2026.
What It Means for Your Financing
Many business credit products are priced off prime. SBA 7(a) loan rates are negotiated with the lender but capped at SBA maximums pegged to prime or an optional peg rate.
Two votes for a hike suggest some policymakers see a case for tighter policy. That is a signal, not a forecast. Future decisions depend on incoming data.
What to Do Now
List which of your current balances are fixed and which are variable.
If you plan to raise capital in the next few months, compare fixed and variable offers side by side.
How Capital Selector Can Help
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This is educational information, not legal, tax, or accounting advice.
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