Federal Reserve Holds Interest Rates Steady for Seventh-Consecutive Month
The 9-3 vote marked the first three-way dissent in the same direction since 2016 as traders raised odds of a year-end hike.
- On Wednesday, July 29, 2026, the Federal Reserve kept the federal funds rate steady at 3.5% to 3.75%, marking its fifth consecutive hold despite three policymakers dissenting in favor of a 25-basis-point hike.
- The Federal Open Market Committee cited elevated inflation relative to its 2% goal, prompting internal division over policy tightening. Lorie Logan of Dallas, Beth Hammack of Cleveland, and Neil Kashkari of Minneapolis cast the dissenting votes.
- Federal Reserve Chairman Kevin Warsh described the meeting as a "rigorous review of the economic situation," welcoming internal debate as a "family fight." He emphasized the committee remains dedicated to controlling inflation.
- The Dow Jones Industrial Average fell 2.19% on Wednesday as markets reacted to the decision. Long-term Treasury yields soared, with the 30-year bond rising 11.5 basis points to 5.211%, signaling investor concerns.
- CME FedWatch data indicates a 90% probability of a rate hike by January 2027 as traders anticipate policy tightening. The Federal Reserve faces a potential credibility test in September if inflation pressures persist over summer.
16 Articles
16 Articles
In a split decision, the United States Federal Reserve (Fed) kept its interest rate unchanged between 3.50 and 3.75 percent, marking the fifth consecutive monetary policy meeting without adjustment.
Bitcoin hovers near $64K after Fed decision; futures open interest hits 2-month high
Bitcoin hovered near $64,000 after the US Federal Reserve kept interest rates unchanged at 3.50%-3.75%, while futures open interest climbed to a two-month high, signalling higher leveraged activity. Bitcoin traded at $64,062, up 0.26% in 24 hours, while Ethereum slipped 0.07%. Among major altcoins, BNB, Solana and Tron gained, whereas XRP, Dogecoin and Cardano declined.
The decision was adopted by a vote of 9 to 3, with three members of the Committee (Beth M. Hammack, Neel Kashkari and Lorie K. Logan) in favour of raising the target rate by 25 basis points. The divergence within the agency showed that, despite the moderation in price indicators, there is still concern about the possibility of inflation remaining above the target of 2 per cent for a longer time. In its statement, the Fed noted that US economic a…
Coverage Details
Bias Distribution
- 60% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
