U.S. FOMC Meeting (July 28-29, 2026)

The Fed Holds, But Three Voters Dissent in Favor of a Hike 

• The Federal Open Market Committee (FOMC) held the policy rate steady at the target range of 3.5%-3.75% for a fifth consecutive meeting. The move was mostly expected by market participants.  
  
• The post-meeting statement was the same as the June release. Economic growth is still characterized as "solid", job growth has "kept pace with the workforce" and inflation continues to be characterized as "elevated".  
  
• The statement continues to affirm the Committee's commitment to price stability.    
  
• The main change was three FOMC members dissented in favour of a quarter point increase in the federal funds rate.    

Key Implications

• This came and went as expected. The statement remained succinct, and apart from the voting tallies, was virtually identical to the June statement (notwithstanding the use of "continuing" rather than "reaffirming" its reserve policy). Three dissenters from the group suggests an increase in the division on the committee, but not far out of line with expectations.  
• Shorter-term Treasury yields are now modestly lower after the release, though the declines haven't been mirrored at the longer end of the curve. Fed futures are now pricing in 36bps of rate hikes by year-end (down from +41bps yesterday). Eyes will now turn to the press conference for any details on the progress of the task forces that have been set up. 

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