What changed in the Federal Reserve statement — 29 July 2026

Federal Reserve held policy at 3.50–3.75%. The vote was 9-3. The July statement maintains the same economic assessment and policy rate, but the emergence of three dissenting votes in favor of a hike marks a hawkish shift in internal dynamics. This suggests the committee is increasingly divided and a rate hike is on the table for the next meeting if data warrants.

Decision

Decision: hold
Fed funds rate: 3.50–3.75%
Vote: 9-3

Dissenters

Beth Hammack — preferred hike
Neel Kashkari — preferred hike
Lorie Logan — preferred hike

Going into the decision

On the day, the committee read as hawkish — 1.1 on a scale where +3 means every member wants higher rates and −3 means every member wants cuts.

Reconstructed from official member remarks published before the decision date. 14 of 17 active members had stored official remarks.

What changed

The July statement maintains the same economic assessment and policy rate, but the emergence of three dissenting votes in favor of a hike marks a hawkish shift in internal dynamics. This suggests the committee is increasingly divided and a rate hike is on the table for the next meeting if data warrants.

Inflation — Little changed. Inflation language unchanged: still elevated relative to 2% goal with supply shocks, and same commitment to deliver price stability.
Labour Market — Little changed. Labour market language unchanged: job gains keep pace with workforce and unemployment little changed.
Rate Path — More hawkish. Rate decision unchanged at 3-1/2 to 3-3/4%, but shift from unanimous vote (12-0) to 9-3 with three dissents favoring a 25bp hike signals increased internal hawkish pressure and risk of future tightening.
Balance Sheet — Little changed. Balance sheet policy unchanged: continuing to maintain ample reserves, no reduction signaled; prior document had no explicit balance sheet mention, so effectively neutral.

Previous wording

The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent
rate path: Rate decision unchanged; no surprise.

Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East.
rate path: Growth solid but risks flagged from geopolitical conflict.

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.
inflation: Inflation still above target; supply shocks add upside risk.

The Committee will deliver price stability.
rate path: Reaffirms commitment to 2% target; no easing bias.

Current wording

The Federal Open Market Committee approved the following statement for release by a 9 – 3 vote:
rate path: Unusually large dissenting minority, underscoring policy divide.

The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent
rate path: No change in rates, but dissents signal internal pressure to hike.

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.
inflation: Inflation still above target, but blamed on supply shocks; suggests possible transience but still unacceptable.

Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East.
rate path: Acknowledges solid growth but cites geopolitical risk, leaving policy direction unclear.

The Committee is continuing its policy of maintaining ample reserves in the banking system.
balance sheet: Status quo on balance sheet policy; no reduction signaled.

Official statement

July 29, 2026

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EDT Share

The Federal Open Market Committee approved the following statement for release by a 9 – 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 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 July 29, 2026

Read the official source

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Background reading

Cadence's comparison is generated from the official documents. Read the methodology.