According to the Federal Reserve Board, the Federal Open Market Committee decided by a 9 to 3 vote on July 29, 2026 to maintain the target range for the federal funds rate at 3,50% to 3,75%, the fifth straight meeting at which the rate has been left unchanged. The Fed said the move supports its dual mandate and that it is continuing its policy of maintaining ample reserves in the banking system.
In the statement, the Committee said economic activity is expanding at a solid pace despite elevated uncertainty tied in part to the conflict in the Middle East, and that productivity growth and capital investment are strong. Job gains have kept pace with the workforce and the unemployment rate has changed little, while inflation remains elevated relative to the Committee's 2% goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy.