Federal Reserve holds key rates steady
The Federal Reserve Board maintained the primary credit rate at 3.75 percent following meetings on April 20 and 29, 2026. The Federal Open Market Committee also kept the federal funds rate target range unchanged.
Uncertainty weighs on regional outlooks
The Federal Reserve Board approved maintaining the primary credit rate at 3.75 percent following requests from twelve Reserve Banks on April 20, 2026.
Directors generally expressed heightened uncertainty about the economic outlook, largely attributed to ongoing geopolitical developments.
Most directors noted that elevated energy and fuel prices were adding to cost pressures.
Stable headcounts and limited hiring were reported across most Districts, indicating little change in labor market conditions.
Several directors cited continued investments related to technology and artificial intelligence.
Reports on consumer spending were mixed, and many directors expressed concern about financial strain on low-income households.
The Board, including Chair Powell, Vice Chair Jefferson, Vice Chair for Supervision Bowman, and Governors Waller, Cook, Barr, and Miran, voted for this action.
Federal funds rate unchanged
In a joint meeting on April 29, the Federal Open Market Committee (FOMC) decided to maintain the target range for the federal funds rate at 3.5 to 3.75 percent, effective April 30, 2026.
The Board also approved maintaining the interest rate paid on reserve balances at 3.65 percent and reaffirmed the primary credit rate at 3.75 percent.
Existing formulas for secondary and seasonal credit programs were renewed.
The secondary credit rate remains 50 basis points above the primary, and the seasonal rate is reset bi-weekly based on the effective federal funds rate and three-month CDs.
Chair Powell and other Board members voted for these actions.