The Fed held its benchmark rate at 3.5% to 3.75% on July 29.
Why it matters: The decision keeps borrowing costs elevated for consumers and businesses, including mortgages, credit and corporate loans. It also signals policymakers are still weighing sticky inflation against the timing of any future cuts.
- The Federal Reserve left its benchmark rate unchanged at 3.5% to 3.75% at its July 29, 2026 meeting.
- The vote was 9-3, with three officials dissenting in favor of a quarter-point rate hike.
- The Fed said economic activity was expanding at a solid pace and inflation remained elevated relative to its 2% goal.
- The hold was the fifth straight meeting without a rate change.
The Federal Reserve kept its benchmark rate in a target range of 3.5% to 3.75% at its July 29, 2026 meeting, according to the Fed's statement. Read the Fed statement
The central bank said economic activity was expanding at a solid pace, but inflation remained elevated relative to its 2% goal. That kept the policy focus on price pressures even as officials opted for a fifth straight hold. See the Fed's wording
The decision was not unanimous. The Fed voted 9-3, with three officials dissenting in favor of a quarter-point rate hike, AP reported. Read AP's report
Market participants had largely expected no change ahead of the meeting, according to Reuters' report on the run-up to the decision. Read Reuters' preview
By the numbers
- 3.5% to 3.75% - The Fed's benchmark target range after the July 29, 2026 decision.
- 9-3 - The vote split, with three dissents in favor of a quarter-point hike.
- 5 - The number of consecutive meetings the Fed has held rates steady.
Yes, but: The statement leaves open how quickly policymakers will move if inflation cools further or if growth weakens.