The Fed holds rates at 3.75-4% after its October 27-28, 2026 meeting, with two dissents favoring a quarter-point hike. The same day, Microsoft and Alphabet released quarterly results driven by their cloud businesses, while Wall Street closed higher on Wednesday and Brent crude fell on Thursday morning.
The FOMC decision and the vote breakdown
The Federal Reserve’s Federal Open Market Committee (FOMC) decided to maintain the target range for the federal funds rate at 3.75-4%. The official statement puts it this way: The Committee decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent.
The vote was ten to two. The two dissenters, Lisa Cook and Beth Hammack, would have preferred to raise rates by a quarter point at this meeting, as the Fed’s statement specifies: Voting against the monetary policy action were Lisa D. Cook and Beth M. Hammack, who preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting. The statement also describes the pace of economic activity as having been robust, without providing a numerical projection for the current quarter.
Microsoft and Alphabet post cloud-driven earnings
Microsoft published results for the first quarter of fiscal year 2027: revenue of $92.3 billion, up 19%, and net income of $36.6 billion, up 32% on a GAAP basis. The company’s press release states: Revenue was $92.3 billion and increased 19% … Net income was $36.6 billion and increased 32% on a GAAP basis … Azure revenue increased 48%. The 48% growth of the Azure cloud service explains much of this increase.
Alphabet, for its part, reported consolidated revenue of $127.6 billion for the third quarter of 2026, up 25%, driven notably by Google Cloud, which reached $30.7 billion, up 103%. The filing submitted to the SEC states: Consolidated Alphabet revenues increased 25% to $127.6 billion … Google Cloud delivered record growth as revenues increased 103% to $30.7 billion. Net income available to common stockholders came to $26.2 billion, for earnings per share of $2.12, according to the same filing: Net income available to common stockholders was $26.2 billion and EPS was $2.12.
Wall Street closes higher Wednesday, Brent falls Thursday
On Wednesday, all three major US indexes closed in positive territory. The S&P 500 gained 0.3% to 7,743.98 points, the Dow Jones Industrial Average 0.2% to 52,475.10 points, and the Nasdaq composite 0.3% to 26,549.85 points, according to the summary published by the San Mateo Daily Journal: The S&P 500 rose 21.38 points, or 0.3%, to 7,743.98. The Dow Jones Industrial Average rose 97.53 points, or 0.2%, to 52,475.10. The Nasdaq composite rose 72.04 points, or 0.3%, to 26,549.85.
On Thursday morning, Brent crude was falling. Trading Economics publishes a price feed that updates continuously, and the precise value observed at the time of writing can no longer be found as such on the page consulted; only the downward direction is retained here. The page consulted links this move to diplomatic signals reportedly exchanged between Washington and Tehran aimed at defusing the escalation in the Middle East, a factor distinct from US monetary policy on which the sources consulted draw no direct connection to the Fed’s decision. This pullback follows several days of tension in the oil market, already covered in our October 28 briefing on the attack on Ras Tanura and our October 26 briefing on Brent falling below $115.
| Indicator | Value | Date |
|---|---|---|
| Fed target rate (FOMC) | 3.75-4% | October 28, 2026 |
| Microsoft revenue (Q1 FY27) | $92.3 billion, +19% | October 28, 2026 |
| Alphabet revenue (Q3 2026) | $127.6 billion, +25% | October 28, 2026 |
| S&P 500 (close) | 7,743.98 points, +0.3% | October 28, 2026 |
| Brent crude (barrel) | falling (value not stabilized in the source) | October 29, 2026 |
The macroeconomic calendar for Thursday, October 29
The Bureau of Economic Analysis (BEA) has scheduled the release of the advance estimate of third-quarter 2026 gross domestic product (GDP) for this Thursday, October 29, 2026, at 8:30 am Eastern time. The BEA’s official calendar confirms this: Scheduled Date October 29 08:30:am Release Title GDP (Advance Estimate), 3rd Quarter 2026. No primary source consulted provides an analyst consensus figure for this release; only the release time is confirmed by the issuing institution.
Frequently asked questions
Why does the Fed hold rates despite two dissents?
The majority of the committee judged that the current level of 3.75-4% remained appropriate, with economic activity progressing at a pace the Fed itself describes as robust. The two dissenters, Lisa Cook and Beth Hammack, would have preferred a quarter-point hike, which shows a difference in assessment within the committee rather than a disagreement over the overall direction of monetary policy.
What do Microsoft’s and Alphabet’s results show about cloud computing?
Both companies posted significantly faster growth in their cloud businesses than in their overall revenue: Azure grew 48% at Microsoft, and Google Cloud grew 103% at Alphabet. These figures, published the same day, suggest sustained demand for cloud infrastructure in this quarter, though this does not allow for a conclusion about a general trend for the following quarters.
Is the October 29 drop in Brent linked to the Fed’s decision?
The sources consulted draw no direct link between the Fed’s decision and the drop in Brent. The Trading Economics page consulted instead associates this move with diplomatic signals reportedly exchanged between Washington and Tehran, a factor distinct from US monetary policy.
Is the third-quarter GDP figure already known?
No. At the time of writing, only the release time of the advance estimate of third-quarter 2026 GDP is confirmed by the Bureau of Economic Analysis, at 8:30 am Eastern time this Thursday, October 29. The figure itself is not yet available in the primary sources consulted.