Fed holds rates for fifth straight meeting as three officials push for a hike

Wednesday, July 29th 2026 - 20:24 UTC

It was the second meeting chaired by Kevin Warsh, who took over the central bank in May

The US Federal Reserve left interest rates unchanged on Wednesday in a range of 3.5% to 3.75%, the fifth consecutive meeting without a move, in a decision that exposed an unusual internal split and left the door open to tightening in September.

The vote was nine to three. Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan each favored raising the benchmark rate by a quarter of a percentage point. According to CNN, that is the largest number of dissents in the opposite direction from the majority decision since September 2016.

It was the second meeting chaired by Kevin Warsh, who took over the central bank in May. In a statement markedly shorter than those issued before his arrival, the Federal Open Market Committee said economic activity is expanding at a solid pace and acknowledged that inflation remains above the 2% target, partly reflecting supply disruptions that have pushed up prices in certain sectors, including energy. The committee said it would deliver price stability, without specifying how.