MNI Fed Review - Jul 2026: FOMC Puts Off “Important Decisions”
Jul-29 22:15By: Tim Cooper
US
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EXECUTIVE SUMMARY:
- The FOMC's July meeting resulted in a hold, highlighted by three dissents in favor of a hike and a press conference that contained hints that future action was being considered.
- The market reaction can't be characterized as dovish, however.
- The short-end of the Treasury curve rallied largely due to the inevitable dashed reaction to the ~30% implied chance of a hike coming into the meeting, and a hike by September is no longer fully-priced.
- But the sell-off in long-end instruments was in our view the more noteworthy takeaway and the one that should concern FOMC participants, with markets starting to wonder when the Fed will match its inflation-fighting rhetoric with action.
