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FOMC Votes 9-3 to Hold Rates at 3.5%-3.75%

8/20/2026

Summary

Story summary

The Federal Open Market Committee voted 9-3 to keep federal funds rate at 3.5%-3.75% on July 28-29.
Minutes said many members view inflation as uncertain and warn tightening may be needed if price gains persist.
Dallas Fed President Lorie Logan, Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari voted for a quarter-point increase.
Treasury officials announced raising weekly long-term Treasury buyback from $2 billion to at least $4 billion.

History

Historical Context

In 1979 Paul Volcker became Fed chair and raised the federal funds rate to a 20% peak in June 1981, pulling inflation from a 14.8% high in March 1980 down to below 3% by 1983 while unemployment briefly topped 10% in early 1983. That “Volcker shock” now frames today’s FOMC debate, where Dallas President Lorie Logan weighs similar tightening to curb price pressures.

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Story summary

The Federal Open Market Committee voted 9-3 to keep federal funds rate at 3.5%-3.75% on July 28-29.
Minutes said many members view inflation as uncertain and warn tightening may be needed if price gains persist.
Dallas Fed President Lorie Logan, Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari voted for a quarter-point increase.
Treasury officials announced raising weekly long-term Treasury buyback from $2 billion to at least $4 billion.

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