Fed May Delay Rate Hikes Despite Persistent Inflation Concerns

WHO:

AP - Kevin Warsh is the new Fed Chair.

AP - Joseph Egelhof and Guneet Dhingra are Fed watchers at BNP Paribas Securities.

AP - Christopher Waller is an influential member of the Fed's governing board.

Bloomberg - Esther George is the former Kansas City Federal Reserve President.

WHAT:

AP - The Federal Reserve is expected to keep its benchmark interest rate unchanged at the upcoming meeting.

AP - Only 29% of Wall Street traders predict a rate increase this week, while 76% foresee a rate hike in September.

AP - Inflation has been above the Fed's 2% target for more than five years.

AP - Inflation peaked at just over 9% in mid-2022 and has since dropped due to 11 rate hikes by the Fed in 2022 and 2023.

AP - Core inflation cooled in June, partly due to slower apartment rent increases and a temporary drop in gasoline prices.

AP - President Trump's tariffs on foreign goods and increased investment in data centers are contributing to inflation pressures.

WHERE:

AP - The Federal Reserve meeting is taking place in Washington.

AP - The Strait of Hormuz is a significant location for oil and natural gas transport.

WHEN:

AP - The next Federal Reserve meeting is scheduled for September 15-16.

AP - The Fed's preferred inflation measure, the personal consumption expenditures (PCE) price index, will be published on a Thursday following the article's context.

WHY:

AP - Policymakers are concerned about the persistent high inflation and its impact on financial markets.

AP - Rising violence in Iran and its impact on oil prices is creating uncertainty for the Fed's decision-making.

HOW:

AP - The Fed is considering holding off on rate hikes to avoid disrupting financial markets that are not expecting an increase.

(UPDATED July 29, 2026 15:39 UTC)

Kevin Warsh has been appointed as the new chair of the Federal Reserve, which is expected to keep its benchmark interest rate unchanged at the upcoming meeting in Washington. With only 29% of Wall Street traders predicting a rate increase this week, and 76% anticipating a hike in September, inflation remains a pressing concern, having been above the Fed's 2% target for over five years. As policymakers grapple with persistent inflation and rising violence in Iran affecting oil prices, the Fed is weighing its options carefully to avoid disrupting financial markets that are not expecting any changes.