Back to today’s briefing

Story perspectives

Fed Holds Rates at 3.5-3.75% as Trump Urges Cuts

7/27/2026

38 6 Full Breakdown

Summary

Warsh Holds Rates

Federal Reserve Chairman Kevin Warsh will announce the July 28-29 decision, keeping the federal-funds target range at 3.50%-3.75% while markets split on a hold versus a 25-bp hike.
President Donald Trump urged the Fed to lower rates, saying the country should have the lowest borrowing costs in the world and defended Chairman Kevin Warsh.
June CPI rose 3.5% YoY, down from May, while core CPI fell to 2.6% YoY.

Summary

ETFs Gain

The Invesco S&P 500 Quality ETF (SPHQ) edged up 0.04%.
The Schwab U.S. Dividend Equity ETF (SCHD) rose 0.57%.
Short-term Treasury ETFs iShares 0-3 Month (SGOV) and Vanguard Short-Term (VGSH) posted small gains.
Analysts cited JPMorgan Chase (JPM), Chubb (CB) and Chevron (CVX) as dividend picks that could profit from higher rates.
Utilities, REITs and telecoms may lag as bond yields rise.

History

Historical Context

After the Federal Reserve lifted the federal-funds target from 0-0.25 % to 0.25-0.50 % on Dec 16 2015 under Chair Janet Yellen, it ended a decade of near-zero rates that began after the 2008 crisis. The July 2024 decision to keep the range at 5.25-5.50 % reflects that same shift, prompting dividend-focused investors such as JPMorgan Chase and Chevron to adjust strategies.

1 of 3

Warsh Holds Rates

Federal Reserve Chairman Kevin Warsh will announce the July 28-29 decision, keeping the federal-funds target range at 3.50%-3.75% while markets split on a hold versus a 25-bp hike.
President Donald Trump urged the Fed to lower rates, saying the country should have the lowest borrowing costs in the world and defended Chairman Kevin Warsh.
June CPI rose 3.5% YoY, down from May, while core CPI fell to 2.6% YoY.

1 / 3