{"id":21420,"date":"2026-07-29T23:23:22","date_gmt":"2026-07-29T18:23:22","guid":{"rendered":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=21420"},"modified":"2026-07-29T23:23:22","modified_gmt":"2026-07-29T18:23:22","slug":"fed-holds-interest-rates-steady-as-economy-weathers-resurgent-inflation","status":"publish","type":"post","link":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=21420","title":{"rendered":"Fed holds interest rates steady as economy weathers resurgent inflation"},"content":{"rendered":"<p><script>\r\n  atOptions = {\r\n    'key' : '644b717812d811d6a1c1fc5b6ccd6fa6',\r\n    'format' : 'iframe',\r\n    'height' : 90,\r\n    'width' : 728,\r\n    'params' : {}\r\n  };\r\n<\/script>\r\n<script src=\"https:\/\/www.highperformanceformat.com\/644b717812d811d6a1c1fc5b6ccd6fa6\/invoke.js\"><\/script>\r\n<br \/>\n<\/p>\n<div xmlns:default=\"http:\/\/www.w3.org\/2000\/svg\" data-testid=\"prism-article-body\">\n<p class=\"EkqkG IGXmU nlgHS yuUao MvWXB TjIXL aGjvy ebVHC \">The Federal Reserve held interest rates steady on Wednesday as the economy weathers resurgent inflation set off by the <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/abcnews.com\/International\/live-updates\/iran-live-updates-tehran-progress-made-strait-hormuz\/?id=135110405\" dir=\"ltr\">Iran war<\/a>.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">The policy decision arrived as oil prices <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/abcnews.com\/Business\/oil-prices-surge-after-trump-vows-retaliation-iranian\/story?id=135185546\" dir=\"ltr\">surged<\/a> and stock prices tumbled in response to a resumption of fighting in the Middle East, underscoring the challenge faced by central bankers tasked with containing price increases.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">The Federal Open Market Committee (FOMC), a 12-member policymaking body at the Fed, issued a statement describing &#8220;elevated&#8221; inflation attributed in part to &#8220;supply shocks that have driven price increases in certain sectors, including energy.&#8221;<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Nine members voted in favor of maintaining interest rates at current levels while three members supported a quarter-point rate increase, the FOMC said.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">The war triggered a historic oil shortage that drove up fuel costs and catapulted inflation to a <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/abcnews.com\/Business\/inflation-report-show-latest-prices-fuel-costs-surge\/story?id=132842452\" dir=\"ltr\">three-year high<\/a>.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">A preliminary peace agreement in June offered up some relief, but a burst of on-again, off-again fighting in recent weeks has caused crude prices to rise.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Fed Chair Kevin Warsh, who took the helm of the central bank in May, has repeatedly vowed to slash inflation to the Fed&#8217;s desired level of 2%. The annual pace of price increases currently registers at 3.5%.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">&#8220;Persistently high prices are a burden for the American people,&#8221; Warsh told reporters in Washington, D.C., last month. &#8220;This committee will deliver price stability.&#8221;<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Odds stand in favor of a rate hike in September, the next time central bankers meet, according to the <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\" dir=\"ltr\">CME Group&#8217;s FedWatch Tool<\/a>, a measure of investor sentiment.<\/p>\n<div class=\"oLzSq QrHMO fnRUo pvsTF EhJPu vPlOC zNYgW OsTsW RMeqy daRVX ISNQ sKyCY eRftA acPPc MENS nFwaT MCnQE mEeeY SmBjI xegrY rPLsU iulOd NIuqO zzscu lzDCc aHUBM IEgzD OjMNy eQqcx SVqKB GQmdz jaoD VWDdR ONJdw vrZxD OnRTz gbbfF roDbV GPGwb oMlSS gfNzt oJhud eXZcf zhVlX \">\n<div>\n<div class=\"InlineImage GpQCA lZur asrEW \" data-testid=\"prism-inline-image\">\n<figure class=\"kzIjN GNmeK pYrtp dSqFO \" data-testid=\"prism-figure\">\n<div class=\"GpQCA lZur gIjeL \" data-testid=\"prism-ratio-frame\">\n<div class=\"FvQLF iLTd NqeUA UzzHi iWsMV \"><picture data-testid=\"prism-picture\"><source media=\"(max-width: 414px)\" srcset=\"https:\/\/i.abcnewsfe.com\/a\/d5101aa8-636e-4bda-a923-e601622b7aab\/groceries-gty-jef-260727_1785180526509_hpEmbed_3x2.jpg?w=375, https:\/\/i.abcnewsfe.com\/a\/d5101aa8-636e-4bda-a923-e601622b7aab\/groceries-gty-jef-260727_1785180526509_hpEmbed_3x2.jpg?w=750 2x\"\/><source media=\"(min-width: 415px)\" srcset=\"https:\/\/i.abcnewsfe.com\/a\/d5101aa8-636e-4bda-a923-e601622b7aab\/groceries-gty-jef-260727_1785180526509_hpEmbed_3x2.jpg?w=750, https:\/\/i.abcnewsfe.com\/a\/d5101aa8-636e-4bda-a923-e601622b7aab\/groceries-gty-jef-260727_1785180526509_hpEmbed_3x2.jpg?w=1500 2x\"\/><img decoding=\"async\" alt=\"\" class=\"hsDdd NDJZt sJeUN IJwXl vBqtr KrDt itslR SjwtZ hakZw HlUVI \" data-testid=\"prism-image\" draggable=\"false\" loading=\"lazy\" src=\"https:\/\/i.abcnewsfe.com\/a\/d5101aa8-636e-4bda-a923-e601622b7aab\/groceries-gty-jef-260727_1785180526509_hpEmbed_3x2.jpg\"\/><\/picture><\/div>\n<\/div><figcaption>\n<div class=\"nMMea bNYiy Mjgpa dGwha DDmxa jgKNG RGHCC aBIU PriDW aiQHS lZur \" data-testid=\"prism-caption\">\n<p><span class=\"hsDdd OOSI GpQCA lZur VlFaz \" data-testid=\"prism-truncate\"><span><span class=\"gtOSm FbbUW tUtYa vOCwz EQwFq yCufu eEak Qmvg nyTIa SRXVc vzLa jgBfc WXDas CiUCW kqbG zrdEG txGfn ygKVe BbezD UOtxr CVfpq xijV soGRS XgdC sEIlf daWqJ \">People shop for groceries at a Wegman&#8217;s store in Brooklyn on July 13, 2026 in New York City.<\/span><\/span><\/span><\/p>\n<p><span class=\"gtOSm FbbUW tUtYa vOCwz EQwFq yCufu eEak Qmvg nyTIa SRXVc vzLa jgBfc WXDas CiUCW kqbG zrdEG txGfn ygKVe BbezD UOtxr CVfpq xijV soGRS XgdC sEIlf daWqJ YNujN JGtjI aZFDu rkKLh \">Spencer Platt\/Getty Images<\/span><\/p>\n<\/div>\n<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Elevated price increases pose a challenge for central bankers eager to beat back price hikes. In theory, the Fed could raise interest rates in an effort to cool off prices, but the move risks a slowdown of hiring.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">So far this year, hiring has proven largely resilient, despite increased costs borne by shoppers and businesses.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Over the first half of this year, the labor market added an average of 92,000 jobs each month, U.S. Bureau of Labor Statistics data showed. That pace marks an improvement from an average of about 7,000 jobs lost per month over the second half of 2025.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Oil prices, a key ingredient in overall price levels, have swung dramatically in recent weeks. Last month, oil prices briefly <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/abcnews.com\/Business\/global-oil-prices-fall-lowest-level-iran-war\/story?id=134164924\" dir=\"ltr\">fell<\/a> to their lowest level since before the late February outbreak of the Iran war on news that a preliminary agreement to end the war had been reached.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">A resumption of large-scale fighting between the U.S. and Iran, however, cast doubt over the staying power of that deal.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Shipping traffic in the Strait of Hormuz declined sharply as the war escalated. The maritime trading route facilitates transport of about one-fifth of global oil supply. In turn, worldwide oil prices <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/abcnews.com\/Business\/global-oil-prices-cross-100-barrel-iran-war\/story?id=135017063\" dir=\"ltr\">climbed<\/a> above $100 a barrel last week.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">By Monday, however, oil prices had <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/abcnews.com\/Business\/oil-prices-plunge-stocks-rise-after-us-pauses\/story?id=135116383\" dir=\"ltr\">plunged<\/a> below $90 a barrel after the U.S. paused strikes on Iran in an apparent attempt at further negotiations. On Wednesday, surged back above $90 per barrel after fighting resumed.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC eTIW sUzSN \">Crude costs account for a large share of the price of auto gasoline. The average price of a gallon of gas currently stands at $4.09, according to <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/gasprices.aaa.com\" dir=\"ltr\">AAA<\/a>, which marks a 37% jump since the Iran war began in February.<\/p>\n<\/div>\n<script async=\"async\" data-cfasync=\"false\" src=\"https:\/\/pl30214220.effectivecpmnetwork.com\/9ab3d4df8a7e1a6171e16ddbf732cc19\/invoke.js\"><\/script>\r\n<div id=\"container-9ab3d4df8a7e1a6171e16ddbf732cc19\"><\/div>\r\n\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve held interest rates steady on Wednesday as the economy weathers resurgent inflation set off by the Iran war. The policy decision arrived as oil prices surged and stock prices tumbled in response to a resumption of fighting in the Middle East, underscoring the challenge faced by central bankers tasked with containing price&#8230;<\/p>\n","protected":false},"author":1,"featured_media":21421,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/i.abcnewsfe.com\/a\/ed367454-9ebf-493e-8e05-44eb372373a0\/fed-reserve-gty-jef-260727_1785180551833_hpMain_16x9.jpg?w=1600","fifu_image_alt":"","footnotes":""},"categories":[22],"tags":[],"class_list":["post-21420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-abc-news"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/21420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21420"}],"version-history":[{"count":0,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/21420\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/media\/21421"}],"wp:attachment":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}