AP News70%
Fed leaves interest rate unchanged but with 3 dissents as Warsh praises ‘good family fight’ 3%
By PAUL WISEMAN73%
7/28/2026, 9:01:06 PM
BS Summary: This article contains 5 faulty reasoning types, including Anchoring Bias, Halo Effect, and Ad Hominem, with Framing Effect as the most egregious example at 7.3% saturation with 38 hits. Analysis detected 141 faulty-reasoning hits from 519 analyzed words, generating a BS Score of 10.6% and a BS Rank of 3% (24,775 of 25,432 articles). This article is better (less manipulative) than 97.40% of the article peer group.
The Federal Reserve left its key interest rate unchanged Wednesday, although three officials dissented in favor of higher rates as the central bank wrestles with how to deal with persistently high inflation.
The Fed’s rate-setting committee reached its decision after two days of deliberations, marking the fifth straight meeting at which the benchmark rate was kept at around 3.6%.
Some economists and Wall Street analysts had predicted the Fed would hike its rate by a quarter point.
But while the decision to stand pat could be seen as good news for consumers, they might not feel much relief with the average credit card rate still near 20% and mortgage rates the highest since last August.
Inflation has been stuck above the central bank’s 2% target for more than five years.
The Iran war has generated uncertainty over the economic outlook and has driven energy prices higher, intensifying inflationary pressure and creating a quandary for Fed policymakers.
In addition, the vast amounts of money being spent by technology companies on artificial intelligence are both driving manufacturing and have resulted in increased prices for items such as computer chips and electricity.
President Donald Trump’s tariffs on foreign goods are also adding to inflation pressures.
Warsh said he welcomed vigorous debate at the committee meeting.
“I asked for a good family fight and I got one,’’ he told reporters at a press conference.
The market is “learning to play the ball and not the referee,” Warsh said.
But some economists were frustrated by the Fed chair’s ambiguous answers to questions.
Thomas Ryan and Stephen Brown of Capital Economics, for instance, complained in a commentary that Warsh’s “vague’’ responses ”make forecasting the Fed’s next move even trickier than it already was.’'
Coming into Wednesday, traders on Wall Street saw a 33% chance the Fed would issue a rate hike, although most expected policymakers to hold off, reluctant to risk disrupting financial markets.
But most expect a rate hike in September, according to data from CME Group.
Trump, who had persistently pressured the Fed to cut rates, voiced support for Warsh.
“He’s fantastic.
He’s a brilliant guy.
Smart.
I know he’d love to see lower interest rates, but he’s got a board and it’s a political board and they want to keep rates up,” Trump told reporters.
Fed officials likely want to see more economic data before changing the benchmark rate.
On Thursday, the Commerce Department delivers the first look at April-June economic growth and it will also publish the Fed’s preferred inflation measure – the personal consumption expenditures (PCE) price index – for June.
“Sternly staring at inflation until it melts before our withering gaze is not an option,’’ Christopher Waller, an influential member of the Fed’s governing board, said in a speech this month.
Still, Waller voted to leave rates alone this week.
AP Writers Josh Boak and Damian Troise contributed to this story.
Earlier versions of this story erroneously reported the name of an economist at BNP Paribas as Joseph Egelhof.
His first name is James.
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