02:30 PM EDT, 07/29/2026 (MT Newswires) -- The Federal Reserve held its policy rate steady in a divided decision that included three officials calling for policy tightening.

The central bank's Federal Open Market Committee maintained the target range for the federal funds rate at 3.50% to 3.75%, marking its fifth consecutive pause.

Three regional Fed presidents dissented with the majority at the meeting; Beth Hammack of Cleveland, Neel Kashkari of Minneapolis and Lorie Logan of Dallas. All three preferred to raise interest rates by a quarter percentage point, the FOMC said Wednesday.

Ahead of the Fed decision, UBS Securities projected three dissenting votes as a base case.

The committee reiterated its pledge to "deliver price stability" as inflation remained above the 2% target amid supply shocks.

US consumer prices fell last month for the first time in more than six years amid lower energy costs, though crude prices have rebounded this month due to renewed hostilities between the US and Iran.

The FOMC said "job gains have kept pace with the workforce, and the unemployment rate has changed little," repeating its views from the June policy statement.

Official data released earlier this month showed the US economy added fewer jobs than expected in June, while economists said downward revisions to payrolls growth in the previous two months clouded a recent revival in the labor market.

Economic activity continued to expand at a "solid" pace, even as uncertainty remained elevated amid the Middle East conflict, the FOMC said Wednesday.

Policymakers' next meeting is scheduled for Sept. 15-16.