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Fed Holds Rates, Markets Push Next Hike to December

8/20/2026

50 5 Full Breakdown

Summary

Story summary

Federal Reserve kept the federal funds rate at 3.5%-3.75% in July 2026.
Regional presidents Beth Hammack, Lorie Logan and Neel Kashkari voted to raise rates by a quarter point.
Market pricing now expects the next rate hike in December rather than September.
Personal consumption expenditures price index fell 0.1% in June, leaving its annual rate at 3.7%.
Nonfarm payrolls dropped 23,000 in July and unemployment fell to 4.1%.

History

Historical Context

In 2008 the Federal Reserve cut the federal-funds target from 5.25% to 2% and launched emergency lending that raised outstanding loans above $1 trillion. Ben Bernanke later warned of the crisis’s severity. In July 2026 the Fed kept the 3.5-3.75% range, signaling a priority on inflation control over rapid job growth.

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Story summary

Federal Reserve kept the federal funds rate at 3.5%-3.75% in July 2026.
Regional presidents Beth Hammack, Lorie Logan and Neel Kashkari voted to raise rates by a quarter point.
Market pricing now expects the next rate hike in December rather than September.
Personal consumption expenditures price index fell 0.1% in June, leaving its annual rate at 3.7%.
Nonfarm payrolls dropped 23,000 in July and unemployment fell to 4.1%.

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