Fed Holds

• Asian stocks showed mixed stability on Thursday following a volatile week characterized by an AI-driven sell-off and uncertainty regarding US Federal Reserve interest rate policies. • South Korea's Kospi rallied 3.55% (up 201.22 points) and Taiwan's benchmark rose 1.66%, while Japan's Nikkei climbed 1.43% to 62,315.56. • Despite these daily gains, the Nikkei and Kospi remain on track for significant weekly declines of 3% and 12%, respectively.

• The Dow and other stock indices rose on July 30, 2026, driven by strong earnings reports from Microsoft (MSFT) and Meta Platforms (META). • The Federal Reserve opted to hold interest rates steady, providing a stable environment for investors despite renewed hostilities in the Middle East. • Market momentum was further bolstered by positive stock futures as investors weighed the Fed's decision against corporate performance.

• The Federal Reserve voted 9 to 3 on Wednesday to keep its benchmark short-term borrowing rate steady within a range of 3.5% to 3.75%. • This decision reflects a divide among policymakers, though the majority remains committed to curbing stubborn inflation. • The rate hold directly impacts the cost of credit across the economy, affecting business financing, credit cards, and auto loans.

• Federal Reserve Chairman Kevin M. Warsh announced that the central bank will hold interest rates steady at a range of 3.5 to 3.75 percent. • While Warsh has designated taming inflation as his top priority, he has faced criticism and market backlash for his reluctance to implement higher borrowing costs. • The decision matters as financial markets have swiftly rejected Warsh's approach, signaling a disconnect between the Fed's current strategy and investor expectations.

Bank’s chair pledges to keep up fight against inflation but decision brings fears the Fed is failing to keep paceUS government borrowing costs have hit their highest level since 2007 after the Federal Reserve voted to hold its key interest rate steady, feeding fears that the central bank may not move fast enough to tame a rise in inflation.The yield – or interest rate – on the 30-year US Treasury bond rose 14 basis points to nearly 5.24%, a 19-year high, after the Fed announced its decision to hold its main rate at between 3.5% and 3.75% for the fifth meeting in a row. Continue reading...

• The Dow Jones Industrial Average plummeted more than 1,100 points and long-term U.S. bond yields surged after the Federal Reserve decided to keep interest rates unchanged. • Internal division was revealed within the Federal Open Market Committee (FOMC), as three of the 12 members had preferred a quarter-point rate hike during the meeting. • Fed official Kevin Warsh suggested that while forward guidance is crucial during financial crises, the approach should be revisited during more stable economic periods.

• Federal Reserve Chair Warsh announced on Wednesday that the central bank will leave its key interest rate unchanged despite persistent inflation and rising energy prices linked to the Iran war. • Appointed by President Donald Trump, Warsh is implementing a strategy of providing fewer signals to financial markets regarding the Fed's future interest rate intentions. • This shift toward reticence is cited as a contributing factor to rising bond yields, with the 10-year Treasury yield climbing from 4.50% in mid-June to 4.64% prior to the decision.