The Federal Reserve kept its benchmark rate unchanged at 3.5%-3.75% for the fifth consecutive meeting, with a 9-3 vote on July 29. Three regional Fed presidents dissented in favor of a rate hike, highlighting growing divisions within the committee over persistent inflation. Kevin Warsh, the new Fed Chair since May 22, will deliver his first major speech at the Jackson Hole symposium scheduled for August 27-29. Robert Kaplan, former Dallas Fed President and current Vice Chairman at Goldman Sachs, backed the hold decision but urged Warsh to clarify the Fed’s policy framework before taking the stage. This setup suggests the Fed is in a wait-and-see posture rather than committed to keeping rates frozen, with summer inflation data expected to determine the next directional move.
Source: Read the original article
