Federal Reserve Chairman Kevin Warsh speaks after Fed holds interest rates steady — 7/29/2026

Summary

Fed Chair Kevin Warsh held a press conference after the FOMC voted 9-3 to keep rates steady, with three dissents favoring a hike. He emphasized commitment to the 2% inflation target, noted market-driven tightening in Treasury yields as constructive, and highlighted a surge in AI-related business capex that is driving up memory and logic chip prices. The Fed is moving away from forward guidance and focusing on market signals to inform future decisions.

• FOMC held rates at 3.5-3.75% with a 9-3 vote; three officials wanted a hike.
• Warsh described the rise in nominal and real Treasury yields as a material market-driven tightening.
• Business capex, especially in AI-related high-tech equipment and software, grew nearly 20% over four quarters.
• The capex boom is pushing up prices of memory and logic chips and AI infrastructure, a topic of inflation discussion.
• The Fed is resolute on the 2% inflation target and will not tolerate any perception of a higher implicit target.
• Warsh established internal task forces to improve data analysis and policy tools.
• Markets have moved to price a high probability of a rate hike by the September meeting.
• The chairman expressed optimism that the Fed will deliver price stability and that the committee is engaged in robust debate.