The Federal Open Market Committee (FOMC) held the federal funds rate target range at 3.5% to 3.75%, citing solid economic growth alongside inflation that remains elevated relative to the Federal Reserve’s 2% goal. Over the past year, the FOMC lowered the range from 4.25% to 4.5% through three 25-basis-point cuts in September, October and December 2025, then held it unchanged. The Federal Reserve will maintain ample reserves through open-market operations and, when appropriate, purchases of shorter-term Treasury securities. Economic activity is expanding at a solid pace, productivity growth and capital investment are strong, job gains have kept pace with the workforce, and unemployment has changed little. Uncertainty remains elevated partly because of the Middle East conflict, while supply shocks have raised prices in sectors including energy. The decision passed 9-3, with three members preferring a 25-basis-point increase, and the FOMC said it will deliver price stability.
Federal Reserve Board2026-07-29
Federal Reserve Board keeps federal funds target range at 3-1/2 to 3-3/4 percent
The Federal Open Market Committee held the federal funds rate target range at 3.5% to 3.75%, citing solid economic growth and inflation remaining above the Federal Reserve’s 2% goal. The decision passed 9-3, with three members preferring a 25-basis-point increase amid elevated uncertainty and supply-driven price pressures.