Archive · 30 Jul 2026
Fed Holds Rates, Three Dissent for 25‑bp Hike
The U.S. Federal Reserve decided not to raise interest rates this week, keeping them at 3.5% to 3.75%.
Most of the 12 members agreed, but three—Beth Hammack, Neel Kashkari, and Lorie Logan—wanted a small increase.
The Fed Chair, Kevin Warsh, said the debate was a "good family fight" and welcomed the discussion.
The Fed said the economy is growing, jobs are steady, but inflation is still above its 2% goal.
They also mentioned that the war in the Middle East is making energy prices higher, which adds to inflation.
Federal Reserve left benchmark interest rate unchanged at 3.5%–3.75% after a 9‑3 vote.
Three policymakers—Beth Hammack, Neel Kashkari, and Lorie Logan—voted for a 25‑basis‑point rate hike.
Chair Kevin Warsh described the debate as a "good family fight" and welcomed the discussion.
The Fed noted the economy is expanding, the labor market is stable, but inflation remains above the 2% target.
Uncertainty from the Middle East conflict was cited as adding inflationary pressure through higher energy prices.
- Who
- Federal Reserve policymakers, including Chair Kevin Warsh and dissenters Beth Hammack, Neel Kashkari, and Lorie Logan
- What
- Decision to keep benchmark interest rates unchanged, with three members voting for a 25‑basis‑point hike
- When
- Wednesday, 2026
- Where
- Federal Open Market Committee meeting
- Why
- To maintain monetary policy amid solid growth but high inflation and uncertainty from the Middle East conflict
- Federal Reserve rate
- 3.5%–3.75%
- Vote result
- 9‑3 to hold
- Dissenters
- Beth Hammack, Neel Kashkari, Lorie Logan
- Inflation target
- 2%
- Middle East conflict impact
- higher energy prices