The Federal Reserve will announce its July interest rate decision on Wednesday, July 29th, at 9:00 PM Turkish time, with Fed Chairman Kevin Warsh making a statement at 9:30 PM. Markets focus on this decision after the Fed kept rates unchanged at 5.25-5.50 percent in June, with Bitcoin surpassing $65,000 following reduced US-Iran tensions. The decision comes as markets weigh inflationary pressures against tariff impacts already reflected in prices, with expert predictions favoring continued rate stability.
Fed Announces July Decision Wednesday, July 29th at 9:00 PM Turkish Time
The Federal Reserve will release its July interest rate decision on Wednesday, July 29th, at 9:00 PM Turkish time. Fed Chairman Kevin Warsh will deliver a statement at 9:30 PM following the announcement. The decision is expected to impact gold, the dollar, oil, Bitcoin, and cryptocurrencies.
Markets Price 66.3% Probability of Unchanged Rates
Market expectations show a 66.3% probability that the Fed will keep interest rates unchanged at 5.25-5.50 percent, matching the June decision. The probability of a 25 basis point rate increase is priced at 33.7%. Bitcoin and global markets started the week positively, with Bitcoin surpassing the $65,000 level after the cessation of mutual attacks between the US and Iran.
Moody's Chief Economist Predicts No Rate Changes This Year
Moody's Analytics Chief Economist Mark Zandi stated, "I expect the Fed to keep interest rates unchanged this year and going into next year." Zandi noted that inflation has likely peaked and that much depends on how the conflict between the US and Iran unfolds. Experts generally predict the Fed will not raise interest rates for the remainder of the year, citing limited inflationary effects and tariffs already reflected in prices.
Warsh Adopts Less Transparent Communication Style Than Powell
Fed Chairman Kevin Warsh has adopted a less transparent approach than his predecessor Jerome Powell regarding forward guidance. Zandi stated that Warsh has made it clear he will not be as transparent as his predecessor, adding that investors will be looking for clues about the Fed's next move and that volatility in bond yields will increase. Warsh's style of giving short answers and avoiding lengthy discussions increases market uncertainty.
FAQ
When will the Fed announce its July interest rate decision?
The Federal Reserve will announce its July interest rate decision on Wednesday, July 29th, at 9:00 PM Turkish time, with Chairman Kevin Warsh making a statement at 9:30 PM.
What are the market probabilities for the Fed's July rate decision?
Markets price a 66.3% probability that the Fed will keep interest rates unchanged at 5.25-5.50 percent, while a 25 basis point rate increase has a 33.7% probability.
How does Kevin Warsh's communication style differ from Jerome Powell's?
Kevin Warsh has adopted a less transparent approach than Jerome Powell, giving short answers and avoiding lengthy discussions about forward guidance, which increases market uncertainty about the Fed's next moves.
