24/08/2026
The Federal Reserveโs decision to hold interest rates steady in late July meeting appears to carry the message of continuity. However, underneath, it was anything but. The policy committee voted 9-3 to keep rates at 3.50% to 3.75%, with dissenting votes raising pressure for a September rate hike. Markets read the hold as hawkish, with the data putting the odds of a September rate hike at roughly 67%. That conviction wavered when nonfarm payrolls added just 57,000 jobs in July, well short of the roughly 115,000 economists had expected, and were later revised down further to +20,000.
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๐ Extracted from the August 2026 Market Insights Report written by the KDI Investment Team.
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