The Federal Open Market Committee (FOMC) kept the federal funds target range unchanged at 3.50–3.75 percent, judging that solid economic growth and stable but low job gains are occurring alongside still-elevated inflation driven partly by higher global energy prices, while Middle East developments cloud the outlook. After cutting the range by a cumulative 75 bp between September and December 2025, the Committee has left it steady throughout 2026. The statement reiterates that policy will be guided by incoming data, the evolving outlook and the balance of risks, and stresses readiness to act if conditions threaten attainment of the 2 percent inflation goal or maximum employment. Four members dissented: one sought a 25 bp cut, and three objected to the inclusion of an easing bias despite backing the hold, underscoring divergent views on the appropriate stance of policy.
Federal Reserve Board 2026-04-29
Federal Reserve System keeps federal funds target range unchanged at 3.50–3.75 percent
The Federal Open Market Committee held the federal funds target at 3.50–3.75 percent, keeping a data-dependent stance after 75 bp of cumulative cuts in late-2025 amid solid growth, modest job gains and still-elevated energy-linked inflation and Middle East risks. Policy views diverged, with one member seeking a 25 bp cut and three supporting the hold but rejecting the statement’s easing bias.