Fed holds interest rates steady as policymakers split on inflation risks
29/07/2026 | 23:18:10
Amman, July 29 (Petra) -- The U.S. Federal Reserve left its benchmark interest rate unchanged on Wednesday, keeping the target range at 3.50% to 3.75% in a decision that saw policymakers divided.
Inflation remains relatively high compared with the Fed's 2% target, driven in part by supply shocks in certain sectors such as energy, the central bank said in a statement reported by Reuters. It also noted that the unemployment rate was largely unchanged.
The Fed said economic activity continues to expand at a moderate pace while the labor market remains solid. However, uncertainty surrounding the economic outlook remains elevated, with future monetary policy decisions dependent on incoming data and evolving risks to inflation and employment.
Three of the 12 members of the Federal Open Market Committee dissented, favoring a quarter-percentage-point rate hike, while nine voted to hold rates steady.
//Petra// AF