As of its April 28-29, 2026 meetings, The Federal Reserve announced that it is keeping the federal funds rate unchanged from March 2026, at 3.5% to 3.75%. This is the second rate announcement of 2026. The previous announcement in January also left the rate unchanged. The decision came after the Federal Open Market Committee’s April meeting.
According to the Federal Reserve’s press release, the FOMC voted to hold the benchmark federal funds rate steady in a range of 3.5% to 3.75%. Unlike the relatively unified decision in March, this meeting was notably divided, with the committee splitting 8-4 — the most dissenting votes since October 1992.
Inflation remains elevated, in part due to rising global energy prices, keeping the Fed from moving toward cuts despite a 2% long-term target. On the labor market side, unemployment rate dipped to 4.3%.
The Fed will continue monitoring incoming data on jobs, prices, and global financial conditions before making any further adjustments. This meeting was also notable as it is expected to be Chair Jerome Powell’s last at the helm, with his term set to expire in mid-May.
The Federal Reserve’s 2026 Interest Rate Announcement Schedule
The Federal Open Market Committee (FOMC) meets eight times a year and announces its decision on what to do with the benchmark interest rate. The schedule for 2025 is as follows:
- January 28-29
- March 17-18
- April 28-29
- June 16-17
- July 28-29
- September 15-16
- October 27-28
- December 8-9
Read the full April 29th FOMC statement below:
Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, on average, and the unemployment rate has been little changed in recent months. Inflation is elevated, in part reflecting the recent increase in global energy prices.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook. The Committee is attentive to the risks to both sides of its dual mandate.
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3‑1/2 to 3‑3/4 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Philip N. Jefferson; Anna Paulson; and Christopher J. Waller. Voting against this action were Stephen I. Miran, who preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting; and Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, who supported maintaining the target range for the federal funds rate but did not support inclusion of an easing bias in the statement at this time.
What is the Benchmark Interest Rate and What Does it Mean for Homebuyers and Homeowners?
It’s important to look at the broader economic picture when buying or selling a home. These interest rate decisions can have a direct impact on your wallet. When buying a home, most people need to borrow the required funds in the form of a mortgage. The mortgage interest rate refers to the percentage a borrower pays to a lender on the funds borrowed for the purchase. Your lender determines your interest rate based on various factors such as credit risk, market conditions, and of course, the benchmark federal funds rate.
Your mortgage rate isn’t the same as the benchmark rate, but they are connected. The federal funds rate is set by the federal government at its scheduled meetings. It is used to influence the interest rates lenders offer on other types of loans—like mortgage loans. When getting a mortgage rate, lenders take into account the benchmark rate, alongside other factors like your debt-to-income ratio and credit score.
Now that you’re more educated on interest rates and how they may impact your home purchase and investment, you could be ready to start home hunting. Your REMAX agent will be there to guide you, every step of the way.
