Fed Chair Kevin Warsh led his second FOMC policy meeting this week. As expected, the committee kept the federal funds rate unchanged at 3.5% to 3.75%. In his press conference, Warsh briefly discussed the current state of the economy and responded to several questions regarding the debate within the FOMC on potential rate hikes. Nationwide&#x27;s Chief Economist Kathy Bostjancic and Head of Enterprise Portfolio Management Leo Svoboda share their reaction to his statement and press conference responses, the market&#x27;s reaction, the 10-year Treasury yields, shape of the yield curve, AI-related debt issuance, and their outlook for future rate announcements from the Fed. [NFM-22911AO]

Fed's family fight yields few details

Economic Insights by Nationwide

Welcome to Economic Insights by Nationwide for July 30, 2026. The Fed's family fight yields few details. The FOMC just wrapped up its second meeting under Fed Chair Kevin Warsh, and as expected, the committee left the federal funds rate unchanged at 3.5 to 3.75%.

In this being his second press conference, Warsh briefly discussed the current state of the economy and was asked several questions about the debate within the FOMC around potential future rate hikes and the division among policyholders on raising rates. This is Brian Kirk, and joining me today we have Nationwide's Chief Economist, Kathy Bostjancic, and Head of Enterprise Portfolio Management, Leo Svoboda. Kathy and Leo, thank you for joining us today.

We look forward to hearing your thoughts on the FOMC's policy statement and the comments from the new chair. Kathy, let's start with you. Chair Warsh is still relatively new in his role. How did his comments align with your expectations? Well, thanks, Brian. I mean, I think first before I get into that, it's worth noting that while the committee decided to keep rates steady, you did have three dissenters.

There's still a significant number, and they were all regional Fed presidents from Cleveland, Minneapolis, and Dallas. Not a surprise, all three of them have been more hawkish in discussing the possibility of raising rates or suggesting they be in favor of raising rates, which they were. They dissented in favor of raising rates to 25 basis points because they're worried that elevated inflation, this prolonged period of that, could push up inflation expectations.

Fed's family fight yields few details

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Fed's family fight yields few details

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.