CNBC: Washington Expected to Keep Interest Rates Unchanged This Week, Reform Plan and Political Factors Could Prompt Delay in Rate Hike

July 29th, according to CNBC, most market observers expect Federal Reserve Chair Kevin Warsh to keep interest rates unchanged at this week's FOMC meeting. Former bank analyst Meredith Whitney also stated that U.S. consumers are facing rising energy costs and a slowdown in credit card spending, giving the Fed more time to monitor the economic situation.

The report mentioned that despite ongoing market concerns about inflationary pressures, Warsh is more inclined to wait for further data. He has previously stated that the increase in energy prices is a supply shock that should not automatically trigger a monetary policy adjustment. He also believes that the cost increase brought by AI investments may not necessarily translate into sustained inflation.

Additionally, Warsh has recently established several external expert working groups to advance Fed policy framework reforms, inflation assessments, and balance sheet issues. Analysts believe that hiking rates hastily before completing these reforms could weaken the Fed's policy adjustment space. The ongoing political pressure from the Trump administration to lower rates also makes Warsh more likely to keep rates steady, continue signaling a hawkish stance, and maintain flexibility for future policies.