News Brief · United States · Published 23 Aug 2026, 07:29
Federal Reserve issues FOMC statement
The Federal Reserve kept its federal funds target range at 3.5%–3.75%, setting the latest stance of U.S. monetary policy.
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The Federal Open Market Committee kept the federal funds target range at 3.5%–3.75%. The decision gives students a current example of how a central bank uses interest rates to influence demand, inflation and wider economic activity.
What happened
At its latest policy meeting, the Federal Open Market Committee kept its target range for the federal funds rate at 3.5%–3.75%. The official FOMC statement is the primary source for the decision.
Why it matters
Changes in the policy rate can affect borrowing costs, saving incentives, asset prices, exchange rates and aggregate demand. Expectations about future policy can also move financial conditions before rates change again.
Economic context
For A-Level Economics, this is direct evidence for monetary policy, interest-rate transmission, inflation control and policy trade-offs. It can support analysis of how tighter, looser or unchanged policy may affect consumption, investment and aggregate demand.
Key data
- Policy decision
- maintain
- Federal funds target lower bound
- 3.5%
- Federal funds target upper bound
- 3.75%
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