What To Look For In The Fed’s July Interest Rate Announcement

The U.S. Federal Reserve is currently expected to raise rates again when it sets rates on July 26, with a small chance of holding rates steady. A rise in rates would be consistent with market expectations, the Fed’s own projections and recent statements from officials.

The jobs market remains robust giving the economy some ability to withstand the inflation fight. In addition, the Fed remains concerned that inflation is not returning fast enough to its 2% target. For example, PCE inflation, often regarded as the Fed’s preferred measure, did fall to a 3.8% annual rate in May, though excluding food and energy the annual rise in prices was greater at 4.6%. That’s still a long way from 2%.