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Fed Holds Rates, Markets Plunge as Treasury Yields Spike

7/30/2026

50 11 Full Breakdown

Summary

Fed Holds Rates

The Federal Reserve (Fed) left its benchmark rate at 3.5%-3.75% on July 29, 2026.
The FOMC voted 9-3, with Beth Hammack, Neel Kashkari and Lorie Logan dissenting on a 25-bp hike.
Fed Chair Kevin Warsh said the committee has no tolerance for persistently elevated inflation.
Mortgage rates rose to 6.76% while credit-card rates stayed near 24%.
Auto loans averaged 7% for new cars and 10.5% for used, tightening affordability.

Summary

Fed Triggers Selloff

Dow Jones fell 1,129.03 points (2.14%) to 51,618.29 after the Federal Reserve (Fed) decision.
The S&P 500 and Nasdaq fell 111.36 points to 7,317.42 and 420.02 points to 24,460.08, respectively, after the Fed’s decision.
30-year Treasury yield rose to 5.22% from 4.61% before the Middle East flare-up.
Meta cut its 2026 cap-ex forecast to $130-145 billion, sending the stock down 4% after hours.
Microsoft rose 0.6% on strong cloud revenue.

History

Historical Context

Facing double-digit inflation that hit 13.5 % in 1980, new Fed Chairman Paul Volcker sharply tightened policy, pushing the federal funds rate to about 20 % by June 1981. Seventy-five years later, Fed Chair Kevin Warsh kept the target at 3.5-3.75 % in the June 2026 meeting, with dissenters Neel Kashkari, Beth Hammack and Lorie Logan warning about inflation risks.

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Fed Holds Rates

The Federal Reserve (Fed) left its benchmark rate at 3.5%-3.75% on July 29, 2026.
The FOMC voted 9-3, with Beth Hammack, Neel Kashkari and Lorie Logan dissenting on a 25-bp hike.
Fed Chair Kevin Warsh said the committee has no tolerance for persistently elevated inflation.
Mortgage rates rose to 6.76% while credit-card rates stayed near 24%.
Auto loans averaged 7% for new cars and 10.5% for used, tightening affordability.

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