Chair of the Federal Reserve Kevin Warsh looks on during a Senate Banking, Housing and Urban Affairs Committee hearing on the Federal Reserve's semi-annual monetary policy report at the U.S. Capitol in Washington, D.C., on July 15. Photo by Bonnie Cash/UPI | License Photo
July 29 (UPI) -- The stock market opened with the Dow falling 400 points on Wednesday ahead of the Federal Open Market Committee's latest interest rate decision.
The committee will announce its decision on Wednesday afternoon with Federal Reserve Chairman Kevin Warsh making his second address since being appointed. Economic indicators point to the Fed holding interest rates at a target range of 3.5% to 3.75%.
"My colleagues and I recognize that high inflation has been an undue burden on American households and businesses," Warsh said during a Senate Banking Committee hearing earlier this month. "The members of our committee have no tolerance for persistently elevated inflation and we share a resolute commitment to restore price stability."
The war in Iran has increased economic pressure, driven by rising fuel costs as the United States and Iran use the crucial Strait of Hormuz as a point of negotiation. The annual inflation rate rose to 4.2% in May on the back of rising gas prices.
