Fed holds rates at 3.50% to 3.75% as three officials dissent
The Federal Reserve kept policy unchanged for a second meeting, while BNP Paribas said Treasury yields may rise as markets price in three hikes starting in December.
Fact Check
The official Federal Reserve FOMC statement confirms rates were held at 3.5-3.75% by a 9-3 vote on July 29, 2026, with three dissenting officials (Hammack, Kashkari, Logan) preferring a hike - matching the claim's core facts, including it being a second consecutive hold (CNBC notes it mirrors the June decision). The BNP Paribas forecast of three consecutive rate hikes starting in December is confirmed by the roic.ai/Bloomberg-sourced report, aligning with the claim that markets/BNP price in three hikes starting December. The only minor discrepancy is the meeting date (cryptobriefing says Aug 2, but the official Fed record is July 29), which does not undermine the substance of the claim.
Summary
The Federal Reserve kept its benchmark interest rate at 3.50% to 3.75% for a second consecutive meeting under Chair Kevin Warsh, with the decision passing 9-3. Beth Hammack, Neel Kashkari, and Lorie Logan dissented and wanted a 0.25 percentage point increase. BNP Paribas said U.S. Treasury yields may keep climbing as markets price in further tightening, forecasting three rate hikes starting in December and arguing that last week's hold could keep investors focused on the Fed's credibility.
Terms & Concepts
- Federal Reserve: The U.S. central bank that sets benchmark interest rates and guides monetary policy.
- U.S. Treasury yields: Returns on U.S. government debt that often move with expectations for Federal Reserve policy.
- prediction markets: Markets that assign probabilities to future events based on trading activity.