Fed holds interest rates at 3.5%–3.75% for fifth straight meeting

The Federal Reserve held its benchmark interest rate steady on 29 July 2026, keeping the federal funds rate in a target range of 3.5% to 3.75%.

Policymakers at the Federal Open Market Committee voted at their 28–29 July meeting to maintain borrowing costs for a fifth consecutive time, a decision that financial markets had widely anticipated.

The hold affects millions of consumers and businesses because the federal funds rate influences the cost of mortgages, auto loans and credit cards.

In its statement, the central bank said the risks to achieving its dual mandate of maximum employment and stable prices are roughly balanced, but it remains attentive to incoming data.

After raising rates aggressively to combat a surge in inflation, the Fed paused its tightening cycle last year and has since calibrated policy to avoid tipping the economy into a downturn while preventing a reacceleration of price pressures.

Future rate moves will depend on the evolution of the economic outlook, officials said, with no predetermined path. Analysts expect the committee to scrutinise upcoming employment and inflation reports before its next scheduled meeting.