July 29, 2026 FOMC Statement

Target range 3.50–3.75% unchanged Dissents: Hammack ↑, Kashkari ↑, Logan ↑ Tone: Balanced +0.18

At a glance·Statement·Our summary·Implementation Note·Press conference

FOMC statement

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EDT

The Federal Open Market Committee approved the following statement for release by a 12 9 – 0 3 vote:

The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve's dual mandate. The Committee ~~reaffirmed~~ is continuing its policy of maintaining ample reserves in the banking system.

Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.

Inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability.

Voting against the monetary policy action were Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, who preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting.

For media inquiries, please email [email protected] or call 202-452-2955.

Implementation Note issued ~~June 17,~~ July 29, 2026

Source

Our summary

What changed

The vote shifted from a unanimous 12–0 to a split 9–3, with three members dissenting.
The dissenting members preferred a 1/4 percentage point increase in the federal funds rate target range, which the FOMC did not adopt.
The statement adjusted the language on the balance sheet from 'reaffirmed its policy' to 'is continuing its policy' regarding ample reserves.

Implications

The shift from unanimity to dissents signals internal debate over the appropriate stance, with some members favoring tightening. The continued commitment to maintaining ample reserves suggests no immediate change to the balance sheet approach, and markets may interpret the dissents as a hawkish lean within the FOMC.

Summary generated automatically from the statements. Not investment advice.

Implementation Note

The settings that put the decision into effect: the interest rate paid on reserves, the FOMC's instructions to the New York Fed's trading desk, and the discount rate. Changes are marked the same way as in the statement.

The Board of Governors of the Federal Reserve System voted unanimously to maintain the interest rate paid on reserve balances at 3.65 percent, effective ~~June 18,~~ July 30, 2026.
As part of its policy decision, the Federal Open Market Committee voted to direct the Open Market Desk at the Federal Reserve Bank of New York, until instructed otherwise, to execute transactions in the System Open Market Account in accordance with the following domestic policy directive: "Effective ~~June 18,~~ July 30, 2026, the Federal Open Market Committee directs the Desk to:
Undertake open market operations as necessary to maintain the federal funds rate in a target range of 3-1/2 to ~~3-3/4~~ 3‑3/4 percent.
Conduct standing overnight repurchase agreement operations at a rate of 3.75 percent.
Conduct standing overnight reverse repurchase agreement operations at an offering rate of 3.5 percent and with a per-counterparty limit of $160 billion per day.
When appropriate, increase the System Open Market Account holdings of securities through purchases of Treasury bills and, if needed, other Treasury securities with remaining maturities of 3 years or less to maintain an ample level of reserves.
Roll over at auction all principal payments from the Federal Reserve's holdings of Treasury securities. Reinvest all principal payments from the Federal Reserve's holdings of agency securities into Treasury bills."
In a related action, the Board of Governors of the Federal Reserve System voted unanimously to approve the establishment of the primary credit rate at the existing level of 3.75 percent.

Source

Press conference

July 29, 2026, 2:30 p.m. ET · Read the transcript

What Warsh said that the statement didn't

The chair said the increase in market interest rates between FOMC meetings ranked around the top decile of the most significant moves in the last two decades.
The chair said the reduction in forward guidance may have been a factor in market participants' real-time reactions to incoming data.
The chair said the most recent data showed four-quarter growth rates of nearly 20 percent in the AI-related category of high-tech equipment and software.
The chair said he had called for a task force to revisit both the private and public data used in the FOMC's decisionmaking, and he would check back with them in the next couple of weeks.
The chair said the June CPI print was not much of a factor in the decision to hold rates, as the FOMC was not relying on any one individual piece of data.

Summary generated automatically from the transcript and the statement.