WASHINGTON, D.C. — American businesses are watching the Federal Reserve closely as policymakers meet against a backdrop of persistent inflation, higher energy prices and growing economic uncertainty.

The Federal Open Market Committee is expected to keep its benchmark interest rate unchanged at its July meeting, with the current target range at 3.5% to 3.75%. The decision comes as policymakers balance inflation concerns against the need to maintain economic growth.

For businesses, the Fed’s decision matters because interest rates influence the cost of business loans, commercial credit, investment and expansion. Companies planning new facilities, equipment purchases or hiring decisions are closely watching whether borrowing conditions could become easier or tighter later this year.

Inflation remains a major challenge. The Fed has maintained its 2% inflation goal, but price pressures have remained above that level for an extended period. At the same time, renewed geopolitical tensions have pushed energy prices higher, creating another potential source of inflation.

Markets are also facing uncertainty over the Fed’s next steps. Investors have increased their expectations for a possible rate increase later in 2026, while officials continue to assess incoming inflation and economic data.

Higher interest rates can increase financing costs for small businesses and large corporations alike. Companies with significant debt may face greater pressure, while businesses dependent on consumer borrowing could also feel the effects if financial conditions remain restrictive.

The decision is particularly important for small businesses, commercial real estate, manufacturers and technology companies, where financing costs can influence expansion plans and investment.

Meanwhile, investors are also watching the relationship between interest rates and the stock market. A surprise change in policy or a stronger-than-expected signal from the Fed could quickly affect equities, Treasury yields and the U.S. dollar.

The July meeting therefore represents more than a central-bank announcement. For American businesses, the Fed’s message could provide an important signal about borrowing costs, investment conditions and the economic outlook for the rest of 2026.