Federal Reserve Decision Looms Large on July 29

The Federal Reserve's decision on July 29 is being closely watched by investors as it could impact the market. The Fed may raise interest rates to curb high inflation, but this could also harm the already fragile US economy.

Most traders are betting that the Fed will leave the federal funds rate at its current targeted range of 3.5% to 3.75%. According to the CME Group, there's a 64% chance the FOMC will do nothing, while only a 36% chance it will be raised to a target range of between 3.75% and 4%.

The commodities and futures exchange suggests that doing nothing allows all of the economy's moving parts to continue finding their optimal way of functioning given the current backdrop. Standing pat is less disruptive, which may be what the domestic economy needs right now.