The division within the US Federal Reserve regarding the future of interest rates is growing, amid continued concerns about a return of inflation, despite widespread expectations that interest rates will remain unchanged during the bank's meeting scheduled for July 28 and 29.
Federal Reserve Chairman Kevin Warsh confirmed that the central bank continues to closely monitor inflation, stressing its commitment to addressing persistently high prices and stating that recent inflation data does not mean the job is done.
In contrast, several Federal Reserve officials indicated that raising interest rates could become an option if inflationary pressures persist, while others preferred to wait for more economic data before taking any new action.
This debate comes amid a renewed surge in oil prices due to geopolitical tensions, coupled with increased demand linked to the artificial intelligence boom, which reinforces concerns about continued pressure on prices.
Analysts believe the central bank is leaning towards a more hawkish approach, but most forecasts still rule out an interest rate hike at the July meeting, as markets await any signals regarding the direction of monetary policy in the coming months.
