Fed Likely to Stay on Hold; How Decision Is Framed Is Key -- Market Talk

0544 GMT - The Federal Reserve is expected to keep the fed funds rate stable at this week's meeting, and the impact of the decision will hinge heavily on how Chairman Kevin Warsh frames the decision and path ahead, Goldman Sachs analysts say in a note. The relative stability in the long end of the Treasury curve and contained inflation risk premia are vulnerable to an on-hold decision that is accompanied by limited guidance on the outlook or reaction function, the analysts say. Money markets currently price in a 31.5% probability of a rate hike this week, while the majority of the market anticipates unchanged rates. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 27, 2026 01:44 ET (05:44 GMT)