The Federal Reserve kept its benchmark interest rate unchanged on July 29, 2026, maintaining the target range for the federal funds rate at 3.50%-3.75% for the fifth consecutive FOMC meeting. The decision, announced at 2:00 p.m. EDT at the end of the two-day meeting that began on July 28, was approved by a vote of 9 to 3, according to the official statement released by the Federal Open Market Committee.
Voting against the action were Beth M. Hammack, president of the Federal Reserve Bank of Cleveland, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, and Lorie K. Logan, president of the Federal Reserve Bank of Dallas, who preferred to raise the target range by 25 basis points (0.25 percentage points), the statement said. According to the World Socialist Web Site (WSWS), it is the first time since 2016 that three FOMC members have dissented in the same direction.
The range has been held at 3.50%-3.75% at all five FOMC meetings held so far in 2026 (January 27-28, March 17-18, April 28-29, June 16-17 and July 28-29), as shown by the statements released after each meeting.
In its statement, the Committee said economic activity is expanding at a solid pace despite elevated uncertainty that owes in part to the conflict in the Middle East, that productivity growth and capital investment are strong, and that job gains have kept pace with the workforce while the unemployment rate has changed little. The Committee added that inflation remains elevated relative to its 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The statement also confirmed that the Committee is continuing its policy of maintaining ample reserves in the banking system.
The meeting was led by Fed chair Kevin Warsh, who took the oath of office as chairman and a member of the Board of Governors on May 22, 2026; on the same day, the FOMC unanimously selected him as its chairman, according to the Fed. At his post-meeting press conference, Warsh said: "There is no soft inflation target, there is no soft implicit target—not on this Committee's watch. There is only a target, and it is 2 percent," as reported by WSWS.
Treasury yields rose around the decision. WSWS reported on July 29 that the yield on the 30-year Treasury bond climbed 0.11 percentage points to 5.22%, its highest level since 2007 and the largest one-day increase in more than a year, while the yield on the 10-year Treasury note rose 0.07 percentage points to 4.67%, the highest level so far this year. According to WSWS, the three dissenters' preference for an increase came as bond markets signaled expectations that inflation will rise in coming months.
The FOMC's remaining meetings in 2026 are scheduled for September 15-16, October 27-28 and December 8-9, according to the Fed's meeting calendar.
Sources
- Federal Reserve — "Federal Open Market Committee statement, July 29, 2026" (primary source): https://www.federalreserve.gov/newsevents/pressreleases/monetary20260729a.htm
- Federal Reserve — "Kevin Warsh takes oath of office as chairman and a member of the Board of Governors", May 22, 2026: https://www.federalreserve.gov/newsevents/pressreleases/other20260522a.htm
- World Socialist Web Site (Nick Beams) — "Split at the Fed as it keeps interest rate on hold", July 29, 2026: https://www.wsws.org/en/articles/2026/07/30/alid-j30.html
- Federal Reserve — FOMC meeting calendars: https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
