Bloomberg Surveillance · Wednesday, July 29, 2026
The Federal Reserve is exhibiting an upside bias on interest rates because they perceive only one side of their mandate—inflation—as a problem. The labor market is seen as stable, with job growth slowing but not indicating significant weakness.
“So they see them as having one issue, and that's why the bias is towards the upside on rates. It's simply that they don't see the other side of the mandate as a problem.”
“Really it's a fairly stable labor market. We maybe job growth has slowed a little, or maybe it was just you know, sort of some of the noise in the data. We had a bit faster job growth for three four months, and now we had kind of a softer month in July, I mean in June. So they're looking at that, but they don't really see that as an issue right now.”