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Fed Holds Rates, Inflation Focus Amid Modest Job Gains

7/7/2026

43 6 Full Breakdown

Summary

Story summary

Fed Chair Kevin Warsh said the Federal Reserve (Fed) will stay focused on inflation and will not cut rates.
The Labor Department reported 57,000 jobs added in June 2026, unemployment fell to 4.2% from 4.3%, and leisure and hospitality lost 61,000 jobs.
Core personal consumption expenditures rose 3.4% year-over-year in May, pushing the dollar index down about 0.6% and two-year Treasury yields to 4.11%.

History

Historical Context

After Paul Volcker became Fed chairman in 1979, the Federal Reserve board sharply tightened monetary policy to curb the double-digit inflation that sparked the early-1980s recession, which began in January 1980 and ended in November 1982. Today, Fed chair Jerome Powell cites Volcker’s approach as the agency resists cutting rates, maintaining an inflation-focused stance.

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Story summary

Fed Chair Kevin Warsh said the Federal Reserve (Fed) will stay focused on inflation and will not cut rates.
The Labor Department reported 57,000 jobs added in June 2026, unemployment fell to 4.2% from 4.3%, and leisure and hospitality lost 61,000 jobs.
Core personal consumption expenditures rose 3.4% year-over-year in May, pushing the dollar index down about 0.6% and two-year Treasury yields to 4.11%.

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