The Federal Reserve has decided to keep the federal funds rate unchanged at 3.5%-3.75%, marking the third consecutive hold, amid significant divergence among policymakers. The April 2026 FOMC meeting recorded the largest split since 1992, with an 8-4 vote. One official advocated for an immediate 25-basis-point cut, while three others, despite agreeing to hold rates, expressed dovish views. This division reflects ongoing debates within the Fed over inflation risks, labor market conditions, and the neutral rate level. As a result, the likelihood of maintaining the current rate for an extended period has increased, with CME FedWatch data indicating a 72.6% probability of no rate cuts throughout 2026. The probability of a 25-basis-point cut at the next meeting in June stands at 4.1%.