The US Federal Reserve voted 9 to 3 to keep its policy rate at 3.50 to 3.75 percent at its meeting on July 28–29, 2026, with the minority favoring a 0.25 percentage point hike. Kasikorn Research Center assesses that the Fed will hold rates at this level for the remainder of 2026, although one hike remains possible if inflation pressures exceed expectations. The Fed continues to emphasize maintaining price stability and bringing inflation back to its 2 percent target, while reducing forward guidance, noting that higher government bond yields reflect tighter financial conditions and lessen the need for rate increases. Kasikorn Research Center also views that the Middle East situation has passed its worst point.