U.S. — Minutes from the Federal Reserve's July 28-29 meeting indicate many officials believe higher interest rates will be necessary if inflation does not subside. The record shows that Federal Reserve officials voted 9-3 at the July meeting to keep the key short-term interest rate unchanged at approximately 3.6%.

The official record of the event states that the Federal Open Market Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve's dual mandate. Only 12 of the 19 Federal Reserve policymakers vote on the outcome of interest rate decisions, and the minutes do not specify how many of the 19 officials supported higher rates.

Regional Federal Reserve banks and the Federal Reserve Board reported much better-than-expected activity in the manufacturing sector. Gas prices have rebounded in August 2026 due to renewed hostilities in the Middle East.

Wall Street investors expect the Federal Reserve to hold interest rates steady at its September meeting. Investors also expect the Federal Reserve may raise interest rates in December 2026. Allspring Global Investments' Ann Miletti stated on Aug. 21, 2026, that Wall Street faces greater risk from the upcoming Jackson Hole economic symposium than from Nvidia Corp. earnings.

Initial jobless claims in the U.S. dropped to 206,000 last week from a revised 212,000 the week before, according to the Labor Department. The four-week moving average of initial jobless claims rose to 204,000 from 199,750. Weekly initial jobless claims have ranged between approximately 200,000 and 230,000 for the past year.

The average 30-year fixed mortgage rate fell to 6.65% from 6.67% the previous week, according to Freddie Mac. The average 15-year fixed mortgage rate dropped to 5.95% from 5.96% the previous week. The average 30-year fixed mortgage rate was 6.58% one year prior to August 2026.