Bloomberg Surveillance · Tuesday, July 28, 2026
Analysts expect the Federal Reserve to hold interest rates steady at its upcoming meeting, citing improved inflation data and mixed labor market signals. However, they caution that future rate hikes are not entirely off the table if inflation does not continue to decline as anticipated.
“Well, it's interesting. I mean, we are expecting a couple of descents coming off out of the committee, But I do think that you could make the case that there may not be any descents, actually, John, because in the end, if we look at what has happened since the June FMC meeting where there were no descents, the data has been better, The inflation data has been better, the labor market data has been somewhat disappointing relative to the trend that we had seen in March, April and May.”
“The big question facing the Fed today is have they tightened enough? And I just don't think that they have enough information to say one way or the other.”
“Absolutely, if inflation doesn't come down in the way that they would like to see, rate hikes are on the table.”