The Federal Reserve's next policy meeting is scheduled for September 15-16. Since July 29, the federal funds rate target range has remained at 3.5%-3.75%.
Recent economic indicators show a strong labor market. The August nonfarm payroll report recorded 162,000 new positions, which is nearly triple the expected 55,000. The unemployment rate remained stable at 4.1%.
Inflation remains a key concern. As of July 2026, the Personal Consumption Expenditures (PCE) index stood at 3.7%, nearly double the Fed's 2% target. Full-year expectations are around 3.5%.
Supply chain disruptions caused by Middle East conflicts have impacted energy costs, shipping routes, and commodity flows, contributing to price pressures.
The July 29 decision to maintain rates was not unanimous, with a 9-3 vote, as three members pushed for a rate hike. Governor Christopher J. Waller suggested on September 3 that rates could stay the same if inflation data moderates.