Fed Holds Rates Steady Amid Persistent Inflation Fears
The Federal Reserve left its benchmark interest rate unchanged on July 29, 2026, as policymakers opted to hold borrowing costs steady despite inflation remaining above their target and energy prices climbing in the wake of the Iran war.
The central bank's rate-setting committee voted 9-3 after a two-day meeting to keep the federal funds rate at about 3.6%, marking the fifth consecutive meeting without a change.
Federal Reserve Chair Kevin Warsh said, 'I asked for a good family fight and I got one,' in reference to the unusually divided vote, which included Beth Hammack, Neel Kashkari, and Lorie Logan.
Warsh emphasized that there is no tolerance for elevated inflation, stating, 'Let me reiterate: there is no soft inflation target. There is no soft implicit target. Not on this committee's watch. There's only a target and it's 2%.'