US Federal Reserve Maintains Interest Rates in July
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US Federal Reserve Maintains Interest Rates in July
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The US Federal Reserve voted to keep its benchmark interest rate unchanged at a target range of 3.5% to 3.75% during its July 2026 meeting.
The decision, made by a 9-3 vote, comes as the Fed continues to address elevated inflation, which remains above its 2% target.
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The Federal Reserve announced on Wednesday, July 29, 2026, that it would maintain its benchmark federal funds rate at its current range of 3.5% to 3.75%. This marks the fifth consecutive meeting the central bank has held rates steady. The vote by the Federal Open Market Committee (FOMC) was 9-3, with three members—Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan—dissenting in favor of a 25-basis-point rate hike.
Fed Chair Kevin Warsh, in his second meeting leading the central bank, reiterated the Fed’s commitment to achieving price stability and its 2% inflation target. He emphasized that the committee would “not hesitate to act” to reach this goal. The FOMC statement noted that economic activity is expanding at a solid pace despite ongoing uncertainty, partly due to the conflict in the Middle East. Inflation, however, remains above the Fed’s target, influenced by supply shocks, particularly in the energy sector.
The decision to hold rates steady was largely anticipated by investors, though rising oil prices and persistent inflation had led to increased speculation about a potential rate hike later in 2026. The dollar had been in a consolidation phase in July, supported by relatively high US interest rates and geopolitical uncertainty, but it weakened after the FOMC outcome and signs of easing inflationary pressures. Meanwhile, global equities saw mixed results in July, with a rotation away from mega-tech and AI-driven stocks towards a broader market, including financials. Banco Santander, a major bank, saw its shares trading near $13.55 in mid-July and announced its intention on July 30, 2026, to launch an exchange offer to acquire outstanding shares of Santander Brazil.