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Fed Holds Rates Steady After CPI Drops to 3.4%

8/18/2026

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Story summary
  • The Federal Reserve’s monetary policy committee voted 9-3 to keep interest rates steady at its July meeting.
  • The consumer price index fell to an annual 3.4% in July, down from 3.5% in June.
  • Fed Chair Kevin Warsh has reduced communication about internal discussions, making the July minutes especially important.
  • Wells Fargo economists say members appear patient now but would raise rates if inflation does not slow further.