Key Points

• The Federal Open Markets Committee voted 9-3 to keep interest rates steady at 3.5% to 3.75%.

• In a press conference after the meeting, Fed Chair Kevin Warsh promised repeatedly to "deliver" on inflation relief.

• But Warsh provided few if any specifics on when consumers might see Fed action.

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“You’ve heard this before, but we will deliver price stability.”

That was Federal Reserve Chair Kevin Warsh’s message after today’s Federal Open Markets Committee meeting, at which the committee voted 9-3 in favor of keeping the federal funds target interest rate unchanged at 3.5% to 3.75%.

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In fact, Warsh used the word “deliver” more than a dozen times in his remarks. “We will deliver the 2% inflation target,” he said in response to a reporter’s question. “We’re going to deliver on the responsibility that Congress gave us,” he responded to another.

But then, in just 3 devastating words, he summed up what we’re all probably thinking in response to the Fed’s promises that it will “deliver” an end to high inflation:

“Deliver it, already!”

Federal Reserve Chair Kevin Warsh. Image source: Federal Reserve.

Inflation rate, meet interest rate

Raising interest rates is the primary tool the Fed uses to lower inflation.

The Fed’s official “target” annual inflation rate is 2%. That means an item costing $100 today would ideally cost $102 a year from now. 2% inflation is high enough to guard against deflation, but low enough not to dampen economic activity.

But the actual U.S. inflation rate has been above the Fed’s 2% target since March 2021. The lowest it’s gotten in the last five years is 2.3% in April 2025. It was 4.2% in May and 3.6% in June.

The Fed sharply raised interest rates in 2022 and 2023 to combat high post-pandemic inflation. When inflation fell below 3% in September 2024, it began lowering them again to their current range of 3.5% to 3.75%.

Raising interest rates can also slow economic growth, but 88% of Americans agree that inflation is a serious problem right now, according to a recent Quinnipiac poll.

Impatience vs. inaction

Reuters reporter Ann Saphir asked Warsh this very question at Wednesday’s press conference, “You’ve said, repeatedly, you have ‘no tolerance’ for inflation, and yet we are seeing above-target inflation repeatedly for five years, and through your term so far,” she said. “And, sure, you have no magic wand, but you have not taken action ... so, could you explain what you mean by ‘no tolerance for inflation,’ and what you plan to do about it?”

“Ann, I hear from you what I hear more broadly from households and businesses: impatience,” responded Warsh. And that’s when he gave his succinct 3-word summary: “Deliver it, already!”

But he went on to explain that the Fed was not, in fact, going to deliver it, already.

Instead, he argued that the problem predated his eight-and-a-half-week tenure, while high inflation has been ongoing for 63 months. “This is not an excuse,” he said. “This is a fact.”

“We are on the job. We will deliver,” he continued, without committing to a time frame, a course of action, or a specific trigger that would prompt the Fed to act.

All talk?

Unlike some previous Fed chairs, Warsh doesn’t offer guidance about potential future interest rate changes. Instead, he wants markets to look at economic indicators and reach their own conclusions about how to act, rather than acting based on the Fed's interpretation of that same data. So it’s not surprising he didn’t directly answer the question.

The lack of action isn’t due to inertia, according to Warsh. “FOMC meetings produce policy decisions,” he said. “But just as important is candid discussion of the big things that matter most.”

Obviously, we expect the Fed chair and the Open Markets Committee to carefully deliberate before making market-shaking decisions. But candid discussion only takes you so far. At some point, action is required.

The takeaway

What’s devastating for consumers and businesses struggling with rampant inflation is that the Fed chair clearly hears and understands the call for action on inflation – “Deliver it, already!” – and not only isn’t he delivering, but he won’t explain why not.

The S&P 500, after initially rising on news of the lack of a rate hike, tumbled 1.5% after bond yields shot up over inflation concerns.

That said, with three of the 12 FOMC members voting to raise interest rates today, a September interest rate hike just got more likely. How likely, though, is anyone’s guess.

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John Bromels has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.