Fed Holds Rates Steady
The Fed kept rates unchanged as officials weighed sticky inflation and internal division.
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Updated Jul 29, 9:00pm ETEvery side, every morning
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The reporting
On July 29, the Federal Reserve held the federal funds rate at 3.5% to 3.75% in a 9-3 FOMC vote, with three officials dissenting in favor of a quarter-point increase. Chair Kevin Warsh, leading his second meeting since taking office on May 2, said inflation remains above the Fed’s 2% target and that there is “no magic wand” to lower prices. The Dow fell about 1,100 points after the decision and his remarks, while oil rose roughly 6% amid U.S.-Iran tensions.
Analysis & opinion
Divided Hawkish FedMostly Center
The rate hold revealed a Fed split over how hard to keep pressing against inflation. Warsh’s hawkish message was muddied by dissent, but it still left investors preparing for tighter policy or even a future hike.
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