Fed Holds Rates Steady, Amid Growing Expectations for Hike

The U.S. Federal Reserve held interest rates steady for the fifth time in a row, keeping the target range at 3.5 to 3.75 percent on Wednesday, July 29, 2026.

This move was widely expected by the market, but still marks a wait-and-see stance from the Fed's monetary policy committee.

The decision came as year-on-year growth in the U.S. headline consumer price index dropped to 3.5 percent in June, down from 4.2 percent in May, due to plunging oil prices.

Despite this decrease, inflation remains elevated compared to the Fed's 2 percent target, and supply shocks have driven up prices in certain sectors, including energy.