{"id":3558,"date":"2026-08-04T03:34:11","date_gmt":"2026-08-04T07:34:11","guid":{"rendered":"https:\/\/vr-news.net\/?p=3558"},"modified":"2026-08-04T03:34:11","modified_gmt":"2026-08-04T07:34:11","slug":"warshs-fed-holds-rates-while-trumps-tariffs-and-war-keep-inflation-high","status":"publish","type":"post","link":"https:\/\/vr-news.net\/?p=3558","title":{"rendered":"Warsh\u2019s Fed Holds Rates While Trump\u2019s Tariffs and War Keep Inflation High"},"content":{"rendered":"
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Today, the Federal Reserve held the federal funds rate steady at 3.50% to 3.75%, its fifth straight meeting without a move. For working families, this means no relief on mortgages, credit cards, or car loans. Although inflation briefly cooled<\/a> in June, that temporary relief was driven by cheaper gas during a ceasefire that Trump derailed. <\/strong><\/p>\n

Since then, gas prices have again crossed $4 per gallon<\/a> and Trump\u2019s new<\/a> tariffs have increased the risk that inflation will accelerate. Despite mounting signs of labor market weakness<\/a>, the Fed\u2019s decision today signals they believe that the inflation Trump reignited is not done yet.<\/strong><\/p>\n

Groundwork\u2019s Chief Economist Breyon Williams<\/a> shared his reaction:<\/strong><\/p>\n

\u201cThe president\u2019s reckless economic policies have done irreparable harm to working families\u2019 budgets. Inflation remains elevated, with no immediate relief in sight for Americans. Even Trump\u2019s hand-picked Fed chair, Wall Street sweetheart Kevin Warsh, knows the president\u2019s actions are driving up prices for consumers and creating an influx of uncertainty for the economy. Today\u2019s decision to hold rates steady is a reflection of a stalled labor market and persistent inflation.\u201d<\/p>\n

To speak with Breyon or any of Groundwork\u2019s experts about Warsh\u2019s first meeting, reply to this email or reach out to press@groundworkcollaborative.org<\/a>.<\/strong><\/p>\n

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BACKGROUND<\/strong><\/p>\n

Inflation remains above the Federal Reserve’s target, and the latest energy price shock has yet to show up in the data. <\/strong><\/p>\n