Key Takeaways:
- The Fed voted 8–4 on April 29, 2026, to hold the federal funds rate at 3.5–3.75%, with Stephen Miran dissenting for a cut.
- The FOMC cited Middle East uncertainty and elevated inflation above the 2% target as key reasons to hold rates steady.
- Bowman, Kashkari, Logan, and Miran split on approach, signaling internal Fed divisions heading into the next 2026 meeting.
Fed: No Change
The FOMC’s April 29 decision was not unanimous. Eight members voted to hold, while four dissented for different reasons. Stephen I. Miran voted to lower the target range by a quarter percentage point. Michelle W. Bowman, Neel Kashkari, and Lorie K. Logan voted to hold rates but objected to language in the statement they believed signaled an easing bias.
Chair Jerome Powell and the majority of voting members cited persistent inflation and a firm labor market as the basis for holding. The committee said in its statement that “ inflation is elevated, in part reflecting the recent increase in global energy prices,” and noted that “job gains have remained low, on average, and the unemployment rate has been little changed in recent months.”
The Fed also pointed to international conditions as a factor in its cautious stance. The committee stated that “developments in the Middle East are contributing to a high level of uncertainty about the economic outlook,” and said it “is attentive to the risks to both sides of its dual mandate.”
On future rate adjustments, the FOMC left the door open without committing to a timeline. The committee said it “will carefully assess incoming data, the evolving outlook, and the balance of risks” before considering any changes, and added that it “would be prepared to adjust the stance of monetary policy as appropriate if risks emerge” that could impede its goals.
Voting to hold rates were Powell; Vice Chair John C. Williams; Michael S. Barr; Bowman; Lisa D. Cook; Philip N. Jefferson; Anna Paulson; and Christopher J. Waller. The split reflects real disagreement inside the committee, with one member pushing for an immediate cut and three others resisting any language that could be read as a signal toward easing.
The Fed’s next scheduled meeting will give policymakers another round of inflation and employment data to assess. Until then, U.S. borrowing costs remain at their current level, with no clear signal from the majority of the committee on when relief may arrive.
