Bloomberg Surveillance · Wednesday, July 29, 2026
Experts anticipate potential dissents at the upcoming Fed meeting, with some officials clearly articulating concerns about elevated inflation and the need for rate hikes. While the AI trade's impact on the tech sector is being monitored as a risk, the primary focus for the Fed remains on persistent inflation, potentially influencing their reaction function.
“I expect that we probably will see some descents today in favor of a hike. Lorie Logan and Beth Hammock laid out very clear explanations for why they thought, if not right away, maybe sometime soon it would be wise for the Fed to raise raids to bring inflation down.”
“I would put what's happening with AI in the tech sector largely into risk that the FED is monitoring. It has had some effect on inflation, so that is something very clear and direct to their mandate.”
“But if you watch like the futures pricing for the FED, it's clear that markets are reacting to that. Like that piece of inflation they think is something the FED will be very reactive to, and I'm not so sure it might be this time is different. They're impatient with inflation and they react to that inflation, but that would be a bit off the playbook for them.”