On hold, leaning higher. Budget for today's rates or more.
Five meetings without a move, and now three votes for a hike. The direction of travel for borrowing costs is no longer down.
By the Xuru Technologies team · 30 July 2026
Key takeaways
- The FOMC held at 3.50%–3.75% on 29 July 2026, its fifth straight hold.
- The vote was 9–3; three regional presidents preferred a 25 basis point increase.
- The statement said inflation remains elevated, partly due to energy supply shocks.
Earlier this year the debate was about when cuts would come. Now it is about whether rates rise.
What happened
PCBB's summary detailed the vote and statement, which said activity is expanding at a solid pace. AgWest Farm Credit also covered the results.
What it means for businesses
- Variable debt is a risk. A hike would raise costs quickly.
- Consumers stay cautious. High rates and energy prices weigh on spending.
- Efficiency is the hedge. Lower costs protect margins whatever happens.
Practical steps
| Step | Why |
|---|---|
| Review variable-rate debt | Consider fixing where sensible. |
| Prioritise fast-payback projects | Conversion and automation first. |
| Grow repeat business | Cheaper than new customer acquisition. |
| Keep cash buffers | Room to act if conditions tighten. |
Frequently asked questions
What did the Fed decide in July 2026?It held the target range at 3.50% to 3.75%, with three officials dissenting in favour of a hike.
It held the target range at 3.50% to 3.75%, with three officials dissenting in favour of a hike.
Will the Fed raise rates in 2026?It is possible. A growing group of officials favour a hike if inflation stays high. This is general information, not financial advice.
It is possible. A growing group of officials favour a hike if inflation stays high. This is general information, not financial advice.
How should small businesses respond?Reduce exposure to variable rates, invest in projects with quick payback and focus on customer retention.
Reduce exposure to variable rates, invest in projects with quick payback and focus on customer retention.
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