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[BUSINESS] · United States · 52 sources

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Federal Reserve Holds Rates Steady Amid Mixed Inflation and Employment Data

The Federal Open Market Committee voted to keep the target federal funds rate range at 3.5 %–3.75 % in its July meeting. Fed officials expressed differing views on future policy: Mary Daly said she fully supports the hold, while Lisa Cook, Kevin Warsh and other governors warned they could raise rates in September if inflation remains above the 2 % target. Inflation is still elevated, with the personal‑consumption‑expenditures (PCE) price index up 3.7 % year‑over‑year through June 2026 and core CPI projected near 3.4 % in July. At the same time, U.S. non‑farm payrolls unexpectedly fell by about 23 000 in July, far short of the 80 000 increase analysts had expected, and the unemployment rate slipped to roughly 4.1 %–4.2 %. The weaker jobs report prompted markets to lower expectations for a September hike, though futures still priced roughly a 55 % chance of a 25‑basis‑point increase. Risk assets reacted strongly: Bitcoin rose about 4.6 % and gold surged roughly 7.5 % over the week following the data release.

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Alberto Musalem · Anchorage Economic Development Corporation · Anna Paulson · Federal Reserve · Jeff Schmid · John Williams · Kevin Warsh · Lisa Cook · Mary Daly · United States

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