The Federal Reserve holds rates at 3.5 to 3.75 percent as three members push for an increase

The US Federal Open Market Committee decided at its meeting on Wednesday, 29 July 2026 (7 Mordad 1405), to leave the target range for the federal funds rate unchanged at 3.5 to 3.75 percent. The statement was approved by a vote of 9 to 3, and the committee said it is continuing its policy of maintaining ample reserves in the banking system.

Beth M. Hammack, Neel Kashkari and Lorie K. Logan were the three members who voted against the decision; all three preferred to raise the target range by a quarter of a percentage point at this meeting. The statement said economic activity is expanding at a solid pace despite elevated uncertainty owing in part to the ongoing conflict in West Asia. The committee also described productivity growth and capital investment as strong, and said job gains have kept pace with the workforce while the unemployment rate has changed little.

The committee stressed that inflation remains elevated relative to its 2 percent goal, partly reflecting supply shocks that have driven price increases in certain sectors including energy. The path of US interest rates reaches Tehran's coin and currency markets through the dollar index and the gold ounce.