Fed Keeps Interest Rates Steady Amid Lack of Economic Data

The Federal Reserve is set to make its decision on interest rates today, July 29. While the probability of a rate hike has tripled over the last week, it's unlikely that policymakers will increase interest rates due to a lack of backward-looking economic data.

The absence of forward-looking guidance from Fed Chair Kevin Warsh is also making things challenging for Wall Street and investors. In June, Warsh axed language from FOMC meeting statements that hinted at future rate decisions.

Economic data points to eventual rate hikes, but not yet. Energy supply issues are rearing their head once more, with Iran shutting down the Strait of Hormuz and causing oil prices to rise. This translates into steeper costs for businesses and consumers.