The Federal Reserve left its key interest rate unchanged Wednesday despite persistently high inflation caused by the Iran war and a spike in energy prices.<\/p>\n
\n
The Fed\u2019s rate-setting committee reached the 9-3 decision after two days of deliberations, marking the fifth straight meeting at which it kept its benchmark rate at around 3.6%. Dissenting from the majority in favor of a quarter-point interest rate hike were Beth Hammack, president of the Federal Reserve Bank of Cleveland; Neel Kashkari, president of the Minneapolis Fed; and Lorie Logan, president of the Dallas Fed.<\/p>\n
Inflation has been stuck above the central bank\u2019s 2% target for more than five years. The Iran war has generated uncertainty over the economic outlook and has driven energy prices higher, intensifying inflationary pressure and creating a quandary for Fed policymakers. Hammack, Kashkari and Logan had previously called for or signaled that they would be open to raising rates to combat high prices. Most Wall Street traders expect the Fed to hike rates at its next meeting in mid-September.<\/p>\n
New Fed Chair Kevin Warsh, presiding over his second meeting of the central bank\u2019s rate-setting committee, has declared that he has \u201cno tolerance\u201d for elevated inflation. He was appointed by President Donald Trump, who has put intense pressure on the Fed to cut rates instead of raising them.<\/p>\n
THIS IS A BREAKING NEWS UPDATE. AP\u2019s earlier story follows below.<\/p>\n
WASHINGTON (AP) \u2014 Federal Reserve policymakers are losing patience with inflation, but they may not be ready to turn their frustration into action \u2014 not this week anyway.<\/p>\n
Meeting in Washington Tuesday and Wednesday, the Fed is expected to\u00a0keep its benchmark interest rate unchanged.\u00a0Members of the central bank\u2019s rate-setting committee may not be so reluctant to act when they gather again next Sept. 15-16.<\/p>\n
Inflation has been stuck above the Fed\u2019s 2% target for more than five years. New Fed Chair Kevin Warsh told Congress earlier this month that he had\u00a0\u201cno tolerance\u2019\u2019 for elevated inflation.\u00a0Warsh is presiding over his second policy meeting this week.<\/p>\n
Fed watchers Joseph Egelhof and Guneet Dhingra at BNP Paribas Securities say it\u2019s possible Warsh\u2019s central bank will \u201crelease the kraken\u2019\u2019 with a \u201cshock rate hike\u2019\u2019 this week. More likely, they write, policymakers will hold off, reluctant to risk disrupting financial markets that aren\u2019t expecting a rate increase yet.<\/p>\n
Policymakers may also want to see more economic data: On Thursday, the Commerce Department delivers the first look at April-June economic growth and it will also publish the Fed\u2019s preferred inflation measure \u2013 the personal consumption expenditures (PCE) price index \u2013 for June.<\/p>\n
Overall, only 29% of Wall Street traders predict that the Fed will raise rates this week. But 76% foresee a rate hike in September. A month ago, only 59% of traders expected a September rate increase, according to the\u00a0CME FedWatch tool.<\/p>\n
\u201cPolicymakers\u2019 patience with high and persistent inflation is broadly exhausted, meaning there is a significant risk\u2019\u2019 of a rate hike in September, Egelhof and Dhingra wrote.<\/p>\n
Casting uncertainty over the Fed\u2019s decision-making is the rising\u00a0violence in Iran. The price of oil briefly\u00a0blasted past $100\u00a0a barrel last week on intensifying fighting. It\u2019s since settled down on hopes the United States and Iran can find some way to reduce tensions.<\/p>\n
Yet early Wednesday, Jordan intercepted missiles launched from Iran early just hours after the U.S. military said it knocked down another Iranian barrage launched against American forces in the Middle East,\u00a0ending a brief pause\u00a0in fighting.<\/p>\n
After the U.S. and Israel attacks on Feb. 28, Iran shut down the Strait of Hormuz \u2013 through which a fifth of the world\u2019s oil and natural gas pass. That caused the greatest disruption in oil supplies in history and sent energy prices surging. They\u2019ve since bobbed up and down depending on the ever-changing state of the conflict and negotiations to de-escalate it, but the average cost for a barrel is $10 to $15 more today than it was at this point last year.<\/p>\n
Now Iranian-backed Houthi rebels from Yemen are attacking shipping in the Red Sea, attempting to stop tankers carrying Saudi Arabian oil from passing through the Bab el-Mandeb Strait.<\/p>\n
The uncertainty puts the Fed\u2019s inflation fighters in a bind.<\/p>\n
\u201cSure, it is possible that the latest rise in prices is a transient blip that will reverse in a heartbeat. Then again, it seems equally that the war with Iran will get worse, that the Strait of Hormuz and Bab al-Mandab will remain blockaded for months or longer, and that energy prices will continue to trend up,\u2019\u2019 wrote Carl Weinberg, chief economist at High Frequency Economics.<\/p>\n
\u201cShould the (Fed) set monetary conditions on a hope that oil prices will reverse course and stay low \u2026 or should a central bank eschew wishful thinking and do its job of minimizing the probabilities that inflation will exceed target?\u2019\u2019<\/p>\n
Inflation has exceeded the Fed\u2019s 2% target since early 2021 when the U.S. economy overheated as it roared back from COVID-19 lockdowns. Inflation peaked at just over 9% in mid-2022 and began to drop in the face of 11 rate hikes by the Fed in 2022 and 2023. But progress has more or less stalled.<\/p>\n
Besides the Iran war, other factors adding to inflation pressure are President Donald Trump\u2019s tariffs on foreign goods and a surge of\u00a0investment in data centers to power artificial intelligence, which is driving up the cost of computer chips and equipment and electricity.<\/p>\n
So-called core inflation \u2013 which excludes volatile food and energy prices \u2013\u00a0cooled in June, partly because apartment rents aren\u2019t rising as fast as they had been. And a temporary drop in gasoline prices last month also helped contain overall inflation.<\/p>\n
But several Fed policymakers have been arguing that the Fed will have to raise rates to return inflation to the 2% target.<\/p>\n
\u201cSternly staring at inflation until it melts before our withering gaze is not an option,\u2019\u2019 Christopher Waller, an influential member of the Fed\u2019s governing board, said in a speech this month.<\/p>\n<\/div>\n
#Fed #nailbiter #July #meeting #decides #leave #rates #unchanged<\/p>\n","protected":false},"excerpt":{"rendered":"
The Federal Reserve left its k… <\/p>\n","protected":false},"author":1,"featured_media":1128,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[2098,273,1336,1335,176,537,1343,2096,215,1337,2097,784,2099],"class_list":["post-1127","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","tag-decides","tag-donald-trump","tag-fed","tag-federal-reserve","tag-inflation","tag-jobs","tag-july","tag-kevin-warsh","tag-leave","tag-meeting","tag-nailbiter","tag-rates","tag-unchanged"],"yoast_head":"\n
Fed, in a nail-biter July meeting, decides to leave rates unchanged - Finance News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vaultinsider.top\/?p=1127\" \/>\n<meta property=\"og:locale\" content=\"zh_CN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fed, in a nail-biter July meeting, decides to leave rates unchanged - Finance News\" \/>\n<meta property=\"og:description\" content=\"The Federal Reserve left its k…\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.vaultinsider.top\/?p=1127\" \/>\n<meta property=\"og:site_name\" content=\"Finance News\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-29T19:13:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2026\/07\/GettyImages-2285603539.jpg?w=2048\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u4f5c\u8005\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"\u9884\u8ba1\u9605\u8bfb\u65f6\u95f4\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 \u5206\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/#\\\/schema\\\/person\\\/ed40724a3e5d482ce66781a042c3c31e\"},\"headline\":\"Fed, in a nail-biter July meeting, decides to leave rates unchanged\",\"datePublished\":\"2026-07-29T19:13:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127\"},\"wordCount\":1015,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.vaultinsider.top\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/GettyImages-2285603539.jpg\",\"keywords\":[\"decides\",\"Donald Trump\",\"Fed\",\"Federal Reserve\",\"inflation\",\"Jobs\",\"July\",\"Kevin Warsh\",\"leave\",\"meeting\",\"nailbiter\",\"rates\",\"unchanged\"],\"articleSection\":[\"Finance News\"],\"inLanguage\":\"zh-Hans\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127\",\"url\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127\",\"name\":\"Fed, in a nail-biter July meeting, decides to leave rates unchanged - Finance News\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.vaultinsider.top\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/GettyImages-2285603539.jpg\",\"datePublished\":\"2026-07-29T19:13:03+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/#\\\/schema\\\/person\\\/ed40724a3e5d482ce66781a042c3c31e\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127#breadcrumb\"},\"inLanguage\":\"zh-Hans\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"zh-Hans\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127#primaryimage\",\"url\":\"https:\\\/\\\/www.vaultinsider.top\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/GettyImages-2285603539.jpg\",\"contentUrl\":\"https:\\\/\\\/www.vaultinsider.top\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/GettyImages-2285603539.jpg\",\"width\":1200,\"height\":600},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/?p=1127#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\u9996\u9875\",\"item\":\"https:\\\/\\\/www.vaultinsider.top\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Fed, in a nail-biter July meeting, decides to leave rates unchanged\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/#website\",\"url\":\"https:\\\/\\\/www.vaultinsider.top\\\/\",\"name\":\"Finance News\",\"description\":\"Just another Finance News site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.vaultinsider.top\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"zh-Hans\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.vaultinsider.top\\\/#\\\/schema\\\/person\\\/ed40724a3e5d482ce66781a042c3c31e\",\"name\":\"admin\",\"url\":\"https:\\\/\\\/www.vaultinsider.top\\\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Fed, in a nail-biter July meeting, decides to leave rates unchanged - Finance News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.vaultinsider.top\/?p=1127","og_locale":"zh_CN","og_type":"article","og_title":"Fed, in a nail-biter July meeting, decides to leave rates unchanged - Finance News","og_description":"The Federal Reserve left its k…","og_url":"https:\/\/www.vaultinsider.top\/?p=1127","og_site_name":"Finance News","article_published_time":"2026-07-29T19:13:03+00:00","og_image":[{"url":"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2026\/07\/GettyImages-2285603539.jpg?w=2048","type":"","width":"","height":""}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"\u4f5c\u8005":"admin","\u9884\u8ba1\u9605\u8bfb\u65f6\u95f4":"5 \u5206"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.vaultinsider.top\/?p=1127#article","isPartOf":{"@id":"https:\/\/www.vaultinsider.top\/?p=1127"},"author":{"name":"admin","@id":"https:\/\/www.vaultinsider.top\/#\/schema\/person\/ed40724a3e5d482ce66781a042c3c31e"},"headline":"Fed, in a nail-biter July meeting, decides to leave rates unchanged","datePublished":"2026-07-29T19:13:03+00:00","mainEntityOfPage":{"@id":"https:\/\/www.vaultinsider.top\/?p=1127"},"wordCount":1015,"commentCount":0,"image":{"@id":"https:\/\/www.vaultinsider.top\/?p=1127#primaryimage"},"thumbnailUrl":"https:\/\/www.vaultinsider.top\/wp-content\/uploads\/2026\/07\/GettyImages-2285603539.jpg","keywords":["decides","Donald Trump","Fed","Federal Reserve","inflation","Jobs","July","Kevin Warsh","leave","meeting","nailbiter","rates","unchanged"],"articleSection":["Finance News"],"inLanguage":"zh-Hans","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.vaultinsider.top\/?p=1127#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.vaultinsider.top\/?p=1127","url":"https:\/\/www.vaultinsider.top\/?p=1127","name":"Fed, in a nail-biter July meeting, decides to leave rates unchanged - Finance News","isPartOf":{"@id":"https:\/\/www.vaultinsider.top\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.vaultinsider.top\/?p=1127#primaryimage"},"image":{"@id":"https:\/\/www.vaultinsider.top\/?p=1127#primaryimage"},"thumbnailUrl":"https:\/\/www.vaultinsider.top\/wp-content\/uploads\/2026\/07\/GettyImages-2285603539.jpg","datePublished":"2026-07-29T19:13:03+00:00","author":{"@id":"https:\/\/www.vaultinsider.top\/#\/schema\/person\/ed40724a3e5d482ce66781a042c3c31e"},"breadcrumb":{"@id":"https:\/\/www.vaultinsider.top\/?p=1127#breadcrumb"},"inLanguage":"zh-Hans","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.vaultinsider.top\/?p=1127"]}]},{"@type":"ImageObject","inLanguage":"zh-Hans","@id":"https:\/\/www.vaultinsider.top\/?p=1127#primaryimage","url":"https:\/\/www.vaultinsider.top\/wp-content\/uploads\/2026\/07\/GettyImages-2285603539.jpg","contentUrl":"https:\/\/www.vaultinsider.top\/wp-content\/uploads\/2026\/07\/GettyImages-2285603539.jpg","width":1200,"height":600},{"@type":"BreadcrumbList","@id":"https:\/\/www.vaultinsider.top\/?p=1127#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\u9996\u9875","item":"https:\/\/www.vaultinsider.top\/"},{"@type":"ListItem","position":2,"name":"Fed, in a nail-biter July meeting, decides to leave rates unchanged"}]},{"@type":"WebSite","@id":"https:\/\/www.vaultinsider.top\/#website","url":"https:\/\/www.vaultinsider.top\/","name":"Finance News","description":"Just another Finance News site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.vaultinsider.top\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"zh-Hans"},{"@type":"Person","@id":"https:\/\/www.vaultinsider.top\/#\/schema\/person\/ed40724a3e5d482ce66781a042c3c31e","name":"admin","url":"https:\/\/www.vaultinsider.top\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=\/wp\/v2\/posts\/1127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1127"}],"version-history":[{"count":0,"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=\/wp\/v2\/posts\/1127\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=\/wp\/v2\/media\/1128"}],"wp:attachment":[{"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vaultinsider.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2026\/07\/GettyImages-2285603539.jpg?w=2048\")
<\/p>\n