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Fed Keeps Benchmark at 3.5-3.75% amid Falling CPI

7/30/2026

24 2 Full Breakdown

Summary

Story summary

The Federal Reserve (Fed) kept its benchmark rate at 3.5%-3.75% on July 29, 2026.
The FOMC voted 9-3 to hold rates, with Beth Hammack, Neel Kashkari and Lorie Logan each supporting a 0.25-point hike.
Fed Chair Kevin Warsh said the economy is resilient, meets the 2% inflation target and denied a soft target.
June data showed CPI fell to 3.5% from 4.2% in May and core CPI was 2.6%.

History

Historical Context

Facing double-digit inflation that hit 13.5% in 1980, Fed Chairman Paul Volcker pushed the federal-funds rate to roughly 20% by June 1981, forcing a deep recession but halving inflation by 1983. The July 2026 decision to keep rates at 3.5-3.75% echoes that restraint, showing the Federal Reserve still relies on tight policy to anchor price stability.

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Story summary

The Federal Reserve (Fed) kept its benchmark rate at 3.5%-3.75% on July 29, 2026.
The FOMC voted 9-3 to hold rates, with Beth Hammack, Neel Kashkari and Lorie Logan each supporting a 0.25-point hike.
Fed Chair Kevin Warsh said the economy is resilient, meets the 2% inflation target and denied a soft target.
June data showed CPI fell to 3.5% from 4.2% in May and core CPI was 2.6%.

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