Kevin Warsh explains the Federal Reserves latest policy moves and takes questions about inflation, interest rates, and the direction of the US economy.
This story about the Federal Reserve's July 2026 interest rate decision is breaking news. Please check back for updates.
I The Federal Reserve On Wednesday it announced it would hold interest rates steady due to concerns about rising inflation amid the Iran war.
Fed policymakers voted 9-3 to leave the benchmark federal funds rate unchanged in its current range of 3.5% to 3.75%. The move follows the central bank's decision to hold rates unchanged in January, March, April and June following three consecutive cuts of 25 basis points in September, October and December to close last year.
The Federal Open Market Committee (FOMC), the central bank's panel responsible for monetary policy, noted that “economic activity is growing at a steady pace despite heightened uncertainty caused, in part, by the Middle East conflict.”
Policymakers noted that inflation remains above the Fed's 2% target, partly due to price shocks driving increases in sectors such as energy, and added that they would bring price stability. The FOMC recently noted that job growth is keeping pace with employment and that the unemployment rate is little changed.
HOW DOES KEVIN WARSH SEE THE CENTRAL BANKING'S MONEY FLEXIBILITY GOAL?
Fed Chairman Kevin Warsh will hold a press conference following the decision. (Al Drago/Bloomberg via Getty Images)
Three members of the FOMC opposed the decision, including Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan. Each of the dissenters voted to raise the federal funds rate by 25 basis points.
The decision was the second under the leadership of Fed Chairman Kevin Warsh, who removed guidance from the FOMC's post-meeting statements.
Warsh said in his opening remarks that the FOMC thought the move to hold rates “was especially wise in these uncertain times,” while stressing to households, businesses and market participants that the Fed does not have a soft or vague inflation target, and remains focused on achieving 2% inflation.
“None of my FOMC colleagues are under any illusions, we have started a new chapter, and we understand that five-and-a-half years of inflation above the target cannot be cured in nine weeks, or in one month of modest price decreases. This Fed will not move. Our credibility depends on doing our jobs and delivering our responsibilities,” said Warsh.
FED CHAIRMAN KEVIN WARSH SAYS THE CENTRAL BANK HAS 'NO PATIENCE' FOR HIGH CURRENCIES.
The Fed chair was asked about the three opponents of the FOMC decision and replied, “I asked for a good family fight, and I got one. That's what this feature is designed for.”
“There was a lot of consensus that I heard that we have the power, the tools, and the authority to deliver stable prices. There is no backing down on our responsibilities. There was a majority in the room that supported the decision we made,” he explained. “There was nothing wrong with that conversation, it was an active, robust conversation about what spanned the spectrum of what we could do and might want to do in the future.”
“The path to central bank heaven needs to deliver our currency. These days, that means delivering price stability. I'm not going to measure that path in 42 days or any particular meeting,” Warsh said. “And I came out of that meeting even more convinced that this is the right team to win the fight against inflation.”
