FOMC, July 29, 2026: Federal funds rate target range held at 3-1/2 to 3-3/4 percent by a 9–3 vote
The FOMC voted 9–3 to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent and to continue its policy of maintaining ample reserves in the banking system. 12
Beth M. Hammack, Neel Kashkari, and Lorie K. Logan voted against the action, preferring to raise the target range by 1/4 percentage point at this meeting. 1
The statement says economic activity is expanding at a solid pace despite elevated uncertainty owing in part to the conflict in the Middle East, that job gains have kept pace with the workforce, and that the unemployment rate has changed little. 1
The statement says inflation remains elevated relative to the 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. It adds that the Committee will deliver price stability. 1
At his press conference, Chairman Warsh said there is no soft inflation target and reiterated that the Committee will deliver price stability. 1
The minutes report that oil prices ended the intermeeting period higher after tensions in the Middle East escalated, while longer-term inflation compensation remained stable and consistent with the 2 percent objective. Near-term inflation compensation declined notably after the June meeting and rose only marginally despite the sharp oil price increase. 1