Federal Reserve Leaves Interest Rates Unchanged in July Meeting

The Federal Reserve has decided to leave interest rates unchanged at 3.50% – 3.75% after its latest Fed meeting on Wednesday. Inflation fears remain on the Fed’s agenda, even with new Fed Chair Kevin Warsh previously favoring heavy cuts. Out of the 12 voting policymakers, three “preferred” a quarter-percentage-point hike, according to the Central Bank.

In a press conference following the Fed meeting, Fed Chair Kevin Warsh praised policymakers for engaging in a ‘real family fight‘ and committed to bringing inflation back down to the 2% target. “This Fed will not waver,” he said. Additionally, the Fed’s statement after its decision noted that economic activity is “expanding at a solid pace,” saying, as it did in June, that job gains “have kept pace with the workforce, and the unemployment rate has changed little.”

“I wouldn’t characterize what we did as anything like a pause,” Warsh noted in his press conference. “I would characterize what we did as a rigorous review of the economic situation.” The Fed didn’t lower rates or raise them. It held steady. It’s taking a beat. It is, in other words, on pause.

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