FOMC Interest Rate Decision Looms on July 29
The Federal Open Market Committee (FOMC) is set to announce its interest rate decision on July 29, and investors are eagerly awaiting the outcome. The FOMC has maintained its target range of 3.5% - 3.7% since June, but with inflation remaining above the Fed's 2% target for over five years, there is speculation about future borrowing costs.
US Federal Reserve Chairman Kevin Warsh will head his second FOMC gathering and has mandated five task forces to conduct an independent review of the central bank's policy-making process. This move is seen as a significant change in the Fed's approach to monetary policy.
JPMorgan predicts that the Fed will remain on hold this meeting and for the rest of 2026, before hiking up interest rates by 25 basis points (bp) in September 2027. However, there is also a possibility of a surprise rate hike, with traders expecting a 30% chance according to the CME Group's FedWatch tool.