
Core PCE Rises to 3.1% in September, Under the Fed’s 3.4% Projection
Core PCE inflation rose to 3.1% over the 12 months through September 2026, the BEA reported October 29, one day after the Fed held the prime rate at 7.00% on a 10 to 2 vote.
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Core PCE inflation rose to 3.1% over the 12 months through September 2026, the BEA reported October 29, one day after the Fed held the prime rate at 7.00% on a 10 to 2 vote.

Bank reserves fell $68.8 billion to $2.894 trillion in the week ended October 28, the lowest since December 2025, as SOFR closed above the Fed’s 3.90% floor for a fourth straight session.

The Federal Open Market Committee held its target range at 3.75% to 4.00% on October 28, 2026, keeping the prime rate at 7.00%. Cook and Hammack dissented for a quarter point hike.

Treasury’s Debt to the Penny series recorded $40,528,358,939,415.85 on October 26, 2026, the first reading above $40.5 trillion, after a $65.21 billion one day rise.

Direct bidders took 41.32% of Treasury’s $69 billion 2-year note auction on October 26, a four-year record for the maturity, as indirect bidders fell to 45.68%.

The Fed opens a two-day meeting Tuesday. 94 of 100 economists surveyed by Reuters expect a hold at 3.75% to 4.00%, keeping the prime rate at 7.00% into December.
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