AIAI briefMeeting brief2026-07-29Fed

FOMC holds rates steady amid three dissents

The FOMC voted 9–3 to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent and to continue maintaining ample reserves in the banking system. 1 2

Beth M. Hammack, Neel Kashkari and Lorie K. Logan dissented, preferring to raise the target range by 1/4 percentage point. 1

The statement says economic activity is expanding at a solid pace despite elevated uncertainty, in part owing to the conflict in the Middle East. It says job gains have kept pace with the workforce and the unemployment rate has changed little. 1

Inflation remains elevated relative to the 2 percent goal, in part reflecting supply shocks including energy. The Committee says it will deliver price stability. 1 2

Chairman Warsh said there is no soft inflation target and that the statement steers clear of forecasting. 1

The minutes say oil prices ended the intermeeting period higher after Middle East tensions escalated, and nominal rates rose largely on expectations of higher policy rates. Longer-term inflation compensation remained stable and consistent with the 2 percent objective. 1

Cited releases · 3

FedPress conferenceJul 29, 2026EN

FOMC Press Conference July 29, 2026

AI At the July 29, 2026 press conference, Chairman Warsh announced that the Committee voted 9-to-3 to maintain the federal funds rate target range at 3½ to 3¾ percent and to continue its policy of ample reserves, and he reiterated that the inflation target is 2 percent with no soft implicit target. He highlighted sharply higher Treasury yields since the last meeting 42 days earlier and strong AI-related business investment, and listed four discussion topics: the legacy of five years of high inflation, the effects of recent economic shocks, shock-driven price increases, and monetary policy tools including the balance sheet.

FedMinutesAug 19, 2026EN

Minutes of the Federal Open Market Committee, July 28–29, 2026

AI These minutes of the July 28–29, 2026 FOMC meeting report that oil prices rose after Middle East tensions escalated, Treasury yields rose 25 to 30 basis points, and markets priced in a 25 basis point hike by September. The staff review found inflation elevated (total PCE 4.1 percent and core PCE 3.4 percent in May), the unemployment rate at 4.2 percent in June, and real GDP still expanding; the Committee unanimously ratified the Desk's domestic transactions.

FedStatementJul 29, 2026EN

Federal Reserve issues FOMC statement

AI By a 9-3 vote, the FOMC decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent and to continue maintaining ample reserves in the banking system. The statement says economic activity is expanding at a solid pace, and inflation remains elevated relative to the 2 percent goal, partly because of supply shocks including energy. Hammack, Kashkari and Logan dissented, preferring to raise the target range by 1/4 percentage point.