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FinanceFed holds rates steady at 3.5%-3.75%; three dissenters sought a quarter-point hike
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The Federal Open Market Committee (FOMC) voted 9-3 to maintain the federal funds rate target range at 3.5% to 3.75%, keeping monetary policy unchanged. The decision supports the Fed's dual mandate of maximum employment and price stability. The Committee noted that economic activity is expanding at a solid pace despite elevated uncertainty partly due to the conflict in the Middle East. Productivity growth and capital investment remain strong, while job gains have kept pace with workforce growth and unemployment has changed little. Inflation remains above the Fed's 2% target, partly due to supply shocks driving price increases in sectors including energy. Three voting members—Beth M. Hammack, Neel Kashkari, and Lorie K. Logan—dissented, preferring a 0.25 percentage point rate increase. The Fed reiterated its commitment to delivering price stability.
Source report
July 29, 2026
For release at 2:00 p.m. EDT
The Federal Open Market Committee approved the following statement for release by a 9–3 vote:
The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve's dual mandate. The Committee is continuing its policy of maintaining ample reserves in the banking system.
Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.
Inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability.
Votes against the monetary policy action:
- Beth M. Hammack
- Neel Kashkari
- Lorie K. Logan
These members preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting.
For media inquiries: Email: [[email protected]](https://www.federalreserve.gov/cdn-cgi/l/email-protection#83eee6e7eae2c3e5f1e1ade4ecf5) Phone: 202-452-2955
Implementation Note issued July 29, 2026
Last Update: July 29, 2026
Source
FRB: Press Release - All ReleasesWestern
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Federal Reserve Holds Interest Rates Steady Amid Middle East Conflict and Elevated Inflation