EL7.AI
CommoditiesMedium•22 October 2026•
2 min read

Fed heads into October meeting with rates at 3.75%–4% as Japan keeps intervention option open

Key Facts

1The Federal Reserve raised its target interest rate range by a quarter percentage point to 3.75%–4% in its latest published decision.
2The Bank of Japan raised interest rates in September to 1.25%, the highest level in 31 years.
3The previous joint intervention lifted the yen away from a low near 164 yen per dollar but failed to provide lasting support for the currency, according to Reuters.
4The Federal Open Market Committee holds its next meeting on October 27 and 28.
5The Bank of Japan meets on October 29 and 30, with the "Bank's View" section of the Outlook Report due on October 30.

The U.S. Federal Reserve heads into its next meeting in October after raising its target interest rate range by a quarter percentage point to 3.75%–4%, according to the central bank's latest published decision. The increase came in September, when the bank described inflation in its statement as "still elevated." In remarks reported by the Associated Press, Kevin Warsh said he did not prejudge monetary policy meeting decisions. He added: "I don't prejudge meetings, and I don't believe in announcing now what I might do." Warsh said he did not announce in advance what decisions he might take at the remaining meetings of the year.

In Japan, the finance minister previously confirmed that her ministry had bought yen in coordination with the U.S. Treasury, according to the Associated Press's account of the previous joint intervention. Reuters reported that the move lifted the Japanese currency away from a low near 164 yen per dollar but failed to provide lasting support. In September, Finance Minister Satsuki Katayama reaffirmed that the foundations of coordination between the countries remained in place, saying: "The principles underpinning the previous joint intervention remain in place." Her remarks indicated that action in the foreign exchange market remained an option. Reuters also reported that Japanese authorities conducted exchange rate checks in overseas markets during September, a step markets watch for signs of possible intervention. On the U.S. side, the Treasury says foreign exchange operations are carried out through the Federal Reserve Bank of New York in its capacity as fiscal agent of the United States. The bank also serves as the Federal Reserve System's operational arm in these transactions, according to the Treasury's explanation of how they are executed.

The upcoming meetings follow the Bank of Japan's September interest rate increase to 1.25%, according to Reuters. That brought Japanese rates to their highest level in 31 years. The next round of meetings begins with the Federal Open Market Committee on October 27 and 28, according to the Federal Reserve's official schedule. The Bank of Japan's monetary policy meeting follows on October 29 and 30, according to the schedule published by the Japanese central bank. Also on October 30, the "Bank's View" section of Japan's Outlook Report will be released, coinciding with the meeting's final day.