Markets Likely to Focus More on Fed's Signals, Less on Rate Decision -- Market Talk

0541 GMT - The Federal Reserve is widely expected to hold the Fed funds rate, but "the bigger story will be the Fed's messaging," Generali Investments' Paolo Zanghieri says in a note. The senior economist expects policymakers to maintain--or even strengthen-a hawkish tone as persistent inflation, rising oil prices and divisions within the FOMC keep the door open to further tightening later this year. "This aligns with Generali's broader outlook that sticky inflation will keep central banks cautious even as headline inflation eases," Zanghieri says. The economist adds that markets will focus less on the rate decision itself and more on any signals regarding the September meeting and the balance between inflation risks and economic growth. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 29, 2026 01:41 ET (05:41 GMT)