The US Federal Reserve has kept the target range for the federal funds rate unchanged at 3.50–3.75% following the July meeting of the Federal Open Market Committee. This marks the fifth consecutive decision to maintain monetary policy parameters without changes. At the same time, the regulator emphasized the increasing uncertainty amid volatility in oil prices and geopolitical tensions in the Middle East, which pose additional inflation risks.
The official decision was made by a majority vote of 9 to 3. Three FOMC members, including Beth Hammack, Neel Kashkari, and Lorie Logan, voted against maintaining the current rate, advocating for a 0.25 percentage point increase. The Fed noted that inflation remains consistently above the 2% target, partially driven by supply shocks in the energy sector.
Despite external pressures, the regulator described the current state of the American economy as resilient. Economic activity is growing at a steady pace, with robust productivity growth and capital investment levels, while job gains are accompanied by a growing labor force, with the unemployment rate remaining stable.
