--- title: "JPM Asset Mgmt: Fed, Holding Rates Steady in Jul, May Be Forced to Act in Coming Mths" type: "News" locale: "en" url: "https://longbridge.com/en/news/294286164.md" description: "J.P. Morgan strategist Kerry Craig notes the Fed held rates steady in July, revealing internal divisions with three members voting for a hike. While Chair Warsh reaffirmed inflation targets, market uncertainty pushed yields up and the dollar down. With inflation persistently above target, Craig warns the Fed may be forced to act if progress stalls, though he expects fewer hikes than markets anticipate, creating opportunities in short-term yields and high-yield assets." datetime: "2026-07-30T01:42:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294286164.md) - [en](https://longbridge.com/en/news/294286164.md) - [zh-HK](https://longbridge.com/zh-HK/news/294286164.md) --- # JPM Asset Mgmt: Fed, Holding Rates Steady in Jul, May Be Forced to Act in Coming Mths Kerry Craig, Global Market Strategist, J.P. Morgan Asset Management, said the US Federal Reserve kept interest rates unchanged at the July policy meeting, in line with expectations. However, the split voting result at the meeting, with three committee members supporting a rate hike, exposed intensifying divisions within the Fed and evident differences in committee members' stances. Federal Reserve Chair Kevin Warsh reiterated his commitment to the inflation target, but his remarks raised more questions than answers regarding the policy path, including questioning the most appropriate inflation gauge and suggesting that markets are doing part of the Fed's work through pricing in higher rates. As a result, the 10-year Treasury yield elevated to a near one-year peak, while the USD Index declined. Craig noted that US inflation has remained above target for five years, coupled with a series of supply-side shocks, and said the Fed's credibility is facing an ongoing test. Investors will question "if not now, then when". Although inflation had been trending lower and the labor market had stabilized before the escalation of tensions in the Middle East, he expected that if inflation progress stalls in the coming months, the Federal Reserve may be forced to take action. He said the gap between the Fed's rhetoric and actions poses challenges for market pricing. The new chair is facing a divided committee and a bond market beginning to question the central bank's resolve. However, the interest rate outlook should not be reinterpreted as a return to a prolonged rate-hike cycle. He expected the eventual number of US rate hikes to be fewer than current market expectations, or even no hikes at all, creating opportunities at the short end of the US yield curve, while the long end remains volatile amid inflation and growth concerns. High-yield and securitized assets continue to offer attractive carry returns, supported by healthy corporate and consumer balance sheets. ### Related Stocks - [JPM.US](https://longbridge.com/en/quote/JPM.US.md) - [JPM-M.US](https://longbridge.com/en/quote/JPM-M.US.md) - [JPM-C.US](https://longbridge.com/en/quote/JPM-C.US.md) - [JPM-D.US](https://longbridge.com/en/quote/JPM-D.US.md) - [JPM-L.US](https://longbridge.com/en/quote/JPM-L.US.md) - [8634.JP](https://longbridge.com/en/quote/8634.JP.md) - [JPM-K.US](https://longbridge.com/en/quote/JPM-K.US.md) - [JPM-J.US](https://longbridge.com/en/quote/JPM-J.US.md) ## Related News & Research - [Why JPMorgan CEO Jamie Dimon Says Investors Should Skip 4.6% Yields — ‘I Would Not Be A Buyer’](https://longbridge.com/en/news/294259333.md) - [Will they or won't they? The case for and against a Fed rate hike](https://longbridge.com/en/news/294230315.md) - [Here's what markets are now saying about Fed rate hikes this year](https://longbridge.com/en/news/293876683.md) - [JPMorgan brings forward Fed rate hike call to December after July hold](https://longbridge.com/en/news/294309337.md) - [Fed Keeps Rates Unchanged at July Meeting as Wall Street Interprets Warsh’s Views](https://longbridge.com/en/news/294324540.md)