Warsh seeks to keep Fed steady amid Iran price pressures, internal divides
Markets expect the Federal Reserve to keep rates steady as policymakers weigh whether rising oil prices and tariffs could reignite inflation.
- On Wednesday, the Federal Reserve's Open Market Committee concludes its two-day meeting in Washington, where Federal Reserve Chairman Kevin Warsh will announce the interest rate decision in what analysts call one of the most unpredictable outcomes in years.
- Persistent inflation remains above the Fed's 2% target—a goal missed for more than five years—while renewed tensions in the Middle East have pushed oil prices higher, complicating Warsh's policy path.
- Only 29% of Wall Street traders predict a rate hike this week, as market uncertainty remains elevated due to Warsh's refusal to provide traditional forward guidance, leaving observers watching for potential dissent among the 12-member committee.
- Stephen Stanley, chief US economist at Santander US Capital Markets, noted a "non-trivial chance" of a surprise hike, while Warsh faces pressure to avoid cementing an "all hat and no cattle" reputation by holding rates steady.
- By the time the FOMC meets again in mid-September, policymakers will have two more months of economic data to better assess inflation trends and guide future rate decisions.
62 Articles
62 Articles
The Fed decides this Wednesday, but the debate is far from closed. With inflation at 3.5% and the labour market at the lowest level since 1969, the pressure to raise rates still increases in 2026.
Fed boss Warsh warns against rising inflation risks, but has not acted so far. Now it has to be shown whether the US Federal Reserve reacts in time - or repeats an old mistake. By Angela Göpfert.
Channel News Asia
BizTocUS Fed expected to hold rates steady as inflation hawks circle
WASHINGTON: The US Federal Reserve is expected to hold interest rates steady on Wednesday (Jul 29), but with surging inflation fuelled by President Donald Trump's war on Iran, analysts say some policymakers will dissent in favour of a rate hike.After two days of closed-door sessions, the Fed's open market com
LancasterOnline
Independent EspañolWASHINGTON (AP) — The Federal Reserve is expected to keep its key interest rate unchanged when it meets on Tuesday and Wednesday, but the agency's president, Kevin Warsh, is facing increasing pressure to raise...
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