Fed Holds Steady, Keeps Rates Unchanged Amid Persistent Inflation

The Federal Reserve's rate-setting committee made its decision on July 29, 2026, keeping the benchmark interest rate at around 3.6% for the fifth consecutive meeting. The vote was 9-3 in favor of maintaining the current rate, with three Fed officials dissenting in favor of a rate increase. Despite persistently high inflation and a spike in energy prices caused by the Iran war, the committee decided not to raise rates at this time. In a press conference following the decision, Fed Chair Kevin Warsh described the policy discussion as a 'good family fight.'

Wall Street still expects a rate hike in September, despite the recent decision. The inflation rate has been above the central bank's 2% target for more than five years.