Analysis: Fed Chairman Warsh's credibility in question after leaving interest rates unchanged

Skip NavigationMarketsPre-MarketsU.S. MarketsEurope MarketsChina MarketsAsia MarketsWorld MarketsCurrenciesPrediction MarketsCryptocurrencyFutures & CommoditiesBondsFunds & ETFsBusinessEconomyFinanceHealth & ScienceMediaReal EstateEnergyClimateTransportationInvestigationsIndustrialsRetailWealthSportsLifeSmall BusinessInvestingPersonal FinanceFintechFinancial AdvisorsOptions ActionETF StreetBuffett ArchiveEarningsTrader TalkTechCybersecurityAIEnterpriseInternetMediaMobileSocial MediaCNBC Disruptor 50Tech GuidePoliticsWhite HousePolicyDefenseCongressExpanding OpportunityEurope PoliticsChina PoliticsAsia PoliticsWorld PoliticsVideoLatest VideoFull EpisodesLivestreamTop VideoLive AudioEurope TVAsia TVCNBC PodcastsCEO InterviewsDigital OriginalsWatchlistInvesting ClubTrust PortfolioAnalysisTrade AlertsMeeting VideosHomestretchJim's ColumnsEducationSubscribePROPro NewsJosh BrownMike SantoliCalls of the DayMy PortfolioLivestreamFull EpisodesStock ScreenerMarket ForecastOptions InvestingChart InvestingSubscribeLivestreamMenuMake ItselectUSAINTLLivestreamSearch quotes, news & videosLivestreamWatchlistSIGN INCreate free accountMarketsBusinessInvestingTechPoliticsVideoWatchlistInvesting ClubPROLivestreamMenu (function() { const userMembershipOnLastVisit = localStorage.getItem("cnbcMeta__cachedUserMembership"); if (!userMembershipOnLastVisit) { // If no user membership is stored, user is likely not logged in. // These users will typically see the banner. return; } const { isPro, isInvestingClubUser } = JSON.parse(userMembershipOnLastVisit); if (!(isPro || isInvestingClubUser)) { // We’re rendering the top banner for users who are not pro or investing club members. return; } // Hide the banner for pro and investing club users. const style = document.createElement("style"); style.id = "top-banner-placeholder-style"; style.innerHTML = "[data-top-banner-placeholder] { display: none; }"; document.head.appendChild(style); })() PoliticsAnalysis: Fed Chairman Warsh's credibility in question after leaving interest rates unchangedPublished Wed, Jul 29 20269:00 PM EDTMatt Peterson@in/mattpetersonwritesWATCH LIVEKey PointsKevin Warsh chaired his second meeting of the Federal Reserve's rate-setting committee, where officials voted 9-3 to leave interest rates unchanged. Investors lowered the odds of a near-term rate hike but pushed long-term Treasury yields higher after the Fed chairman's press conference.Warsh declined to spell out what would make him raise rates, consistent with his move away from forward guidance.The market reaction raises early questions about Warsh’s credibility on inflation and his ability to lead a divided Fed.In this articleUS30YFollow your favorite stocksCREATE FREE ACCOUNTTraders work after a Federal Open Market Committee (FOMC) meeting on the floor of the American Stock Exchange (AMEX) at the New York Stock Exchange (NYSE) in New York, US, on Wednesday, July 29, 2026. Michael Nagle | Bloomberg | Getty ImagesFor a Federal Reserve chairman who prizes credibility above all other virtues, the market's reaction to Kevin Warsh's remarks Wednesday must have been painful. Warsh hosted a press conference Wednesday afternoon following a meeting of the Federal Open Market Committee, which voted 9-3 to leave interest rates unchanged. It was just the second such meeting since Warsh became head of the Fed on May 22. Investors responded by sharply lowering the chances that the Fed will raise interest rates at its next meeting but also raised the yields on long-term government debt. After the press conference, the yield on the 30-year Treasury hit its highest level since 2007, while the yield on the 2-year Treasury fell. The chances that the Fed would leave interest rates unchanged at its next meeting jumped by 2