Goldman Sachs Vice Chairman Backs Fed's Decision to Hold Rates Steady in July

Robert Kaplan, Goldman Sachs vice chairman and former president of the Dallas Federal Reserve, said in a Bloomberg Television interview broadcast Wednesday, August 12, 2026 (21 Mordad 1405), that he backed the Federal Reserve's decision to hold interest rates at 3.50 to 3.75 percent in July, a decision made on a 9 to 3 vote of the Federal Open Market Committee. He said policymakers should review fresh inflation and labor market data without a predetermined stance ahead of the September 15 and 16 meeting.

According to Arzdigital, Kaplan pointed to softer US inflation data, with the July consumer price index up 0.1 percent month on month, bringing annual inflation down to 3.4 percent from 3.5 percent. He added that tariffs, labor market constraints, elevated oil prices and AI related investment could keep inflationary pressure elevated in the near term. Prediction market data showed traders pricing in about a 67 percent chance the Fed holds rates steady at the September meeting.