---
title: "[Major Bank Report] DWS Market Commentary: Will the market be more hawkish than the Federal Reserve at the July FOMC meeting?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294318389.md"
description: "DWS Chief U.S. Economist Christian Scherrmann commented that the July FOMC meeting continued a hawkish tone and maintained policy flexibility. The market's response indirectly assists in tightening, but the Federal Reserve should not be overly confident. The new chairman faces challenges: lowering expectations weakens effectiveness, while concerns about inflation push up bond yields. The necessity for future rate hikes is limited, but sustained inflation decline is needed to maintain interest rates, and external environmental impacts still pose risks for rate hikes"
datetime: "2026-07-30T07:09:58.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294318389.md)
  - [en](https://longbridge.com/en/news/294318389.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294318389.md)
---

# [Major Bank Report] DWS Market Commentary: Will the market be more hawkish than the Federal Reserve at the July FOMC meeting?

On July 30th, Christian Scherrmann, Chief U.S. Economist at DWS, commented on the July FOMC meeting: Overall, this meeting maintained a hawkish tone and retained flexibility for future policy direction. The Federal Reserve did not rule out the possibility of further rate hikes, with the primary goal being to achieve a 2% inflation target. On the other hand, the financial markets reacted as the authorities wished, effectively substituting the Federal Reserve's tightening policy efforts. However, while the Federal Reserve demonstrates readiness to combat inflation, it should not be overly confident in its policies. The new Federal Reserve Chair is about to face market tests: if rate hike expectations are lowered, it will weaken the effectiveness of the Federal Reserve's tightening; conversely, if there are concerns about inflation rising again, it will significantly push up bond yields, thereby triggering market risks that the Federal Reserve overlooked in this meeting. Additionally, controlled inflation expectations also reflect the limited necessity for further rate hikes in the future, especially since the current policy rate is already sufficient to suppress the real economy. We still believe that to maintain the current interest rate level, each future inflation report must show a trend of sustained inflation decline, which may include price reduction effects caused by tariffs, oil price fluctuations, adjustments in statistical bases, and economic growth remaining at potential levels without overheating. Meanwhile, the impact of AI-related spending remains unclear. We also want to emphasize that some key factors influencing inflation trends still depend on unpredictable external environments, so the risk of future rate hikes still exists

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