Fed holds at 3.75% to 4% as two officials favor a hike
Three stories: the Fed’s split decision, diesel stocks at a late October low in EIA data, and a study of AI agents at work.
Key figure: Fed funds target range, Oct. 28: 3.75% to 4%, unchanged, vote 10 to 2. Source: Federal Reserve, 2 p.m. ET.
Key points
- The Fed held rates; a governor and the Cleveland Fed president wanted a hike.[1][2][3]
- Distillate stocks hit a late October low in EIA data as gasoline eased.[7][8][10]
- A Microsoft Research and Georgia Tech study sorts AI agent problems into 23 categories.[12]
Story 1 of 3
The Fed holds at 3.75% to 4%; two officials favor a hike
Why did the Fed hold, and who wanted a hike?
Why did the Fed hold, and who wanted a hike?
Policymakers kept the federal funds target range at 3.75% to 4% on a 10 to 2 vote, the Fed’s 2 p.m. ET statement shows. A Fed governor and the Cleveland Fed president dissented, preferring a quarter point increase. The statement said inflation “remains elevated” and that more information will help set policy. Interest on reserves stays at 3.90%, the implementation note shows. Closes at 4 p.m. ET: S&P 500 7,743.98, up 0.3%; Dow 52,475.10, up 0.2%; Nasdaq 26,549.85, up 0.3% (CNBC, AP).[1][2][3][4][5][13][14]
Key number: 3.75% to 4%, unchanged (Federal Reserve).
Story 2 of 3
Diesel stocks hit a late October low as gasoline eases
Is diesel getting tighter while gasoline eases?
Is diesel getting tighter while gasoline eases?
Yes, in EIA data. Distillate stocks, which include diesel, fell 1.462 million barrels to 102.824 million in the week to Oct. 23, EIA reported, the lowest for late October in EIA weekly data since 1982. Analysts had expected a 0.9 million barrel draw, Reuters said. In EIA’s weekly retail survey for Oct. 26, regular gasoline fell for a fifth straight week to $4.269 a gallon, while diesel rose 7.6 cents to $6.352.[7][8][9][10][11]
Key number: 102.8 million barrels of distillate (EIA).
Exhibit 1. U.S. distillate stocks in late October, by year Million barrels, week ending nearest Oct. 23 (2026: Oct. 23)
| Year (week ending) | Distillate stocks (million barrels) |
|---|---|
| 2016 | 152.4 |
| 2017 | 129.2 |
| 2018 | 126.3 |
| 2019 | 119.8 |
| 2020 | 156.2 |
| 2021 | 125.0 |
| 2022 | 106.4 |
| 2023 | 112.1 |
| 2024 | 112.9 |
| 2025 | 112.2 |
| 2026 | 102.8 |
Source: U.S. Energy Information Administration, weekly series WDISTUS1. Chart: New Street.[8]
Story 3 of 3
A study sorts AI agent problems into 23 categories
What did a new study find about AI agents at everyday tasks?
What did a new study find about AI agents at everyday tasks?
Microsoft Research and Georgia Tech sorted 163,487 Reddit posts about AI agents into 23 categories of problems in seven groups, their arXiv paper says. In a study of 73 experienced users, the problems rated most serious were also rated hardest to notice. The paper has not been peer reviewed.[12]
Key number: 23 categories (Microsoft Research and Georgia Tech).
Three stories from Wednesday: the Fed’s hold, a tighter diesel market and what a new study found about AI agents at everyday tasks.
Notes
The late October comparison covers every EIA weekly reading dated Oct. 17 to Oct. 31 since the series began in August 1982; the prior low was 106.357 million barrels on Oct. 21, 2022. Exhibit 1 shows the week ending nearest Oct. 23 in each year. Gasoline and diesel prices are EIA weekly retail survey averages for Oct. 26, 2026. The study is an arXiv preprint and has not been peer reviewed.
Accessed Oct. 28, 2026, between 3:05 p.m. and 4:13 p.m. ET. Times are U.S. Eastern (EDT).
Sources
- Federal Reserve issues FOMC statement
- Implementation Note issued October 28, 2026
- Federal Open Market Committee: 2026 Committee Members
- Fed holds rates steady
- Fed keeps key rate unchanged at about 3.9% despite elevated inflation
- Fed leaves rates steady
- Weekly Petroleum Status Report, Table 1
- Weekly U.S. Ending Stocks of Distillate Fuel Oil (WDISTUS1)
- Gasoline and Diesel Fuel Update
- US crude and distillate inventories fall, gasoline stocks rise, EIA says
- US EIA Distillate Stocks Change (Oct/23) -1.462M vs. Exp. -0.9M
- Babysitting AI Agents: A User-Centered Taxonomy and Study of Agentic Delegation Failures
- S&P 500, Dow rise for third consecutive day after Fed holds steady on rates: Live updates (updated 4:06 p.m. ET)
- The bond market swings, but US stocks remain steady after the Fed says it won't raise interest rates (4:06 p.m. ET update)