{"id":1118570,"date":"2026-07-29T18:35:19","date_gmt":"2026-07-29T18:35:19","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/1118570\/"},"modified":"2026-07-29T18:35:19","modified_gmt":"2026-07-29T18:35:19","slug":"us-federal-reserve-holds-interest-rates-steady-despite-warshs-inflation-vow","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/1118570\/","title":{"rendered":"US Federal Reserve holds interest rates steady despite Warsh\u2019s inflation vow"},"content":{"rendered":"<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The Federal Reserve held interest rates steady on Wednesday, a choice that may intensify questions about how US central bank chief Kevin Warsh will deliver on his commitment to bring inflation back down to the 2 per cent target.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The widely \u200cexpected decision to leave the benchmark interest rate in the 3.50 per cent to 3.75 per cent range drew dissents from three of the 12 members of the policy-setting Federal Open Market Committee who \u201cpreferred\u201d a quarter-percentage-point hike at this meeting.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Those same three, the presidents of the Fed\u2019s Cleveland, Dallas and Minneapolis regional banks, had also dissented at Jerome Powell\u2019s final meeting as central bank chief in late April, that time in favour of removing the implied promise of lower rates.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Warsh, \u2060who took over as head of the Fed in May, has said he has \u201cno tolerance\u201d for inflation that has been \u200crunning above the central bank\u2019s target for more than five years, and up until last month was accelerating as the war in the Middle East pushed up global fuel and food prices, \u200cand investment in data centres and other spending tied to artificial intelligence drove up demand.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cInflation remains elevated relative \u2060to the committee\u2019s 2 per cent goal,\u201d \u2060the Fed said in a short policy statement after the end of its latest two-day meeting. It replicated word for word all of the June 17 \u200cstatement\u2019s assessment of the economy.<\/p>\n<p><img decoding=\"async\" alt=\"The Federal Reserve Board building is seen in Washington in November 2025. Photo: Reuters\" data-qa=\"BaseImage-handleRenderImage-StyledImage\" class=\"e1gf69pb2 css-6ikqhs e445x7d0\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/07\/0617165f-a446-4621-a2d7-efcbccbe4eb6_a2edc9ba.jpg\" title=\"The Federal Reserve Board building is seen in Washington in November 2025. Photo: Reuters\"\/>The Federal Reserve Board building is seen in Washington in November 2025. Photo: Reuters<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The Fed said economic activity is \u201cexpanding at a solid pace,\u201d noting, as it did in June, that job gains \u201chave kept pace with \u200cthe workforce, \u200cand the unemployment rate has changed little\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"The Federal Reserve held interest rates steady on Wednesday, a choice that may intensify questions about how US&hellip;\n","protected":false},"author":2,"featured_media":1118571,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[5311],"tags":[323,7033,18589,1646,73856,7372,476,478,17178,258611,839,83158,479,49,978,659,256069],"class_list":["post-1118570","post","type-post","status-publish","format-standard","has-post-thumbnail","category-united-states","tag-ai","tag-cleveland","tag-dallas","tag-fed","tag-federal-open-market-committee","tag-federal-reserve","tag-inflation","tag-interest-rates","tag-jerome-powell","tag-kevin-warsh","tag-middle-east","tag-minneapolis","tag-tariffs","tag-united-states","tag-us","tag-usa","tag-warsh"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/117004712552307230","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1118570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=1118570"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1118570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/1118571"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=1118570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=1118570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=1118570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}