Fed Holds Rates Steady for a Fifth Meeting as Warsh Says 2% Inflation Target Stands

News Editor

2026-07-29 23:59:44

The Federal Reserve left the federal funds rate unchanged at 3.50%-3.75% on July 30, marking its fifth straight hold. The Federal Open Market Committee approved the decision in a 9-3 vote, with three regional Fed presidents dissenting in favor of a rate hike. According to the report, this was the first time since 2016 that three dissents all backed tightening. At the post-meeting press conference, Fed Chair Warsh said the central bank does not have a “soft” inflation goal and that its only target remains 2% inflation. He said officials would not hesitate to act if inflation stays elevated and rejected describing the decision as a “pause,” adding that the lack of action now marks the start of the policy process, not the end. Warsh also said market pricing is something the Fed watches, but not something it uses to set policy. He described U.S. economic activity as solid, with productivity, capital spending and AI investment staying strong, while the labor market remains firm. Markets reacted during the statement and press conference, with spot gold rising more than $50 at one point and moving above $4,100, the dollar index slipping below 101, the 2-year Treasury yield falling about 8 basis points, and the 30-year yield rising about 10 basis points.

Federal ReserveFOMCInterest RatesInflationWarshMacroPolicy Regulation

The Federal Reserve kept the federal funds rate unchanged at 3.50%-3.75% on July 30, extending its run of no-change decisions to five meetings. The Federal Open Market Committee approved the move by a 9-3 vote, while three regional Fed presidents dissented in favor of a rate increase. The report said it was the first time since 2016 that three dissents all supported a hike.

Warsh says the 2% inflation target has not changed

At the press conference, Federal Reserve Chair Warsh said the Fed does not have a “soft inflation target” and that its only target has remained 2% inflation throughout. If inflation stays high, he said, the central bank would not hesitate to act when necessary and appropriate.

Warsh also said he would not describe the latest decision as a “pause.” In his words, the choice not to act at this stage is the beginning of the policy process, not the end. He added that market pricing is something the Fed observes, but it does not set policy on that basis.

Assessment of the economy and the split vote

Warsh said U.S. economic activity remains solid, with productivity, capital spending and AI investment all staying strong. He also said the labor market remains firm and that the Fed has done “quite well” on full employment, while officials continue to make a strict assessment of economic conditions.

Addressing the dissenting votes, he said the committee had full internal discussion, but the final decision still won support from an overwhelming majority of members.

Market moves after the decision

During the policy release and the press conference, spot gold rose by more than $50 at one point and moved above $4,100. The U.S. dollar index fell below 101. In Treasuries, the 2-year yield declined by about 8 basis points, while the 30-year yield rose by about 10 basis points.

Rate markets trimmed overall pricing for additional tightening later this year, though they still priced in about 15 basis points of expectations for a September hike. Trump later said that Warsh wanted rate cuts, but that the Federal Reserve has a “political board.”

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

200

Disclaimer:

The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.

Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.