CLEVELAND — Federal Reserve officials voted 9-3 to keep interest rates unchanged in the range of 3.5% to 3.75% on July 31. The Federal Reserve kept interest rates unchanged for the fifth consecutive time during this meeting. Three Federal Reserve regional bank presidents dissented from the vote to keep rates unchanged and favored a quarter-point rate increase.

"Now is the time to act," Hammack said at a public event on August 11. "Inflation does not merely raise costs. It raises uncertainty."

Federal Reserve Governor Lisa Cook stated in an August 5 speech that she believed price pressures would fade over time. Cook cited analyst forecasts that oil prices would decrease by the end of the year. She also stated that tariff-fueled inflation on products was mostly in the past and expected AI supply chains to adjust and prevent price increases on computer chips.

According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI-U, all items) was 333.952 in June 2026. The July consumer price index (CPI) is scheduled for release on Wednesday. The Federal Reserve's personal consumption expenditures (PCE) price index is scheduled for publication on August 26.

Why It Matters

The dissent by Beth Hammack and two other regional bank presidents shows a division within the Federal Reserve over how to handle persistent inflation. While the majority voted to hold rates steady at 3.5% to 3.75%, the dissenters argued that delaying action risks entrenching high prices and increasing economic uncertainty for businesses and consumers.

The debate occurs against a backdrop of mixed signals from price data. With the Consumer Price Index at 333.952 in June 2026, officials face conflicting indicators about the durability of inflation. Upcoming releases of the CPI and PCE price indices will provide further data on whether inflation is moderating.

Timeline

On June 1, 2026, the Request for Information: Shaping the Future of the Bureau of Transportation Statistics; Extension of Comment Period was issued. This notice extends the public comment period for the Request for Information (RFI) titled, Shaping the Future of the Bureau of Transportation Statistics (BTS), which was published in the Federal Register on June 1, 2026 (91 FR 32508). BTS is taking this action in response to requ.

On July 31, 2026, Federal Reserve officials voted 9-3 to keep interest rates unchanged in the range of 3.5% to 3.75% late last month. The Federal Reserve kept interest rates unchanged for the fifth consecutive time. Three Federal Reserve regional bank presidents dissented from the vote to keep rates unchanged and favored a quarter-point rate increase. Hammack was among the three Federal Reserve officials who dissented in favor of a rate increase.

On August 5, 2026, Federal Reserve Governor Cook stated in an August 5 speech that she believed price pressures would fade over time. She stated that tariff-fueled inflation on products was mostly in the past. "For these three reasons, I felt it was appropriate not to change rates while we see how these factors evolve. If I do not see signs of continued disinflation soon, I am prepared to act," she said.

What's New

According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI-U, all items) was 333.952 in June 2026. This data point provides additional context for the inflation debate occurring within the Federal Reserve.

President Donald Trump has renewed efforts to fire Federal Reserve governor Cook. This development introduces political dimensions to the ongoing monetary policy discussions.

President Donald Trump has introduced new tariffs on dozens of trading partners. These trade actions are relevant to the inflation outlook discussed by Federal Reserve officials.

How Sources Differ

Federal Reserve Governor she stated in an August 5 speech that she believed price pressures would fade over time. In contrast, Federal Reserve Bank of Cleveland President Hammack dissented from the July decision to hold rates steady, advocating for a rate increase to address persistent inflation.