FOMC Outcome: Will US Fed Raise Interest Rates Amid Inflation Concerns?

The US Federal Reserve's two-day meeting concluded on July 29, and investors are eagerly awaiting the outcome. The FOMC, led by Chairman Kevin Warsh, is set to release its decision at 2:00 pm (ET) after considering various factors, including inflation rates and job growth. Experts predict a 68.5% probability of keeping interest rates unchanged at their current level, while a 31.5% chance of increasing them.

The FOMC's dual mandate is to maintain price stability and generate maximum employment for the US economy. Chairman Warsh has emphasized his focus on delivering price stability, which has been a concern due to rising inflation above the 2% target range. The committee will also consider the impact of global crude oil prices and the West Asia crisis on the US economy.

According to CME Group's FedWatch data, market experts predict a 25 basis point rate hike at least once in calendar year 2026. Analysts remain divided on whether the US Federal Reserve will raise its interest rates this time.