Warsh after the rate hold: there is no soft inflation target, only one target, and it is 2 percent

Federal Reserve Chairman Kevin Warsh said at his press conference on Wednesday, 29 July 2026, following the US central bank's decision to hold interest rates in the 3.5% to 3.75% range, that there is no soft inflation target and that "there is only a target, and it is 2 percent."

Warsh added that five-plus years of inflation above target cannot be cured in nine weeks, or by a single month of modest price decreases, and stressed that the Federal Reserve will not hesitate to act if needed to stop inflation. Three members of the Federal Open Market Committee dissented from the decision to hold, with all three voting to raise the federal funds rate by 25 basis points.

The bond market responded to that tone: the 10-year US Treasury yield rose 7 basis points the same day to 4.67%, and the 30-year yield reached 5.21%, which CNBC reported as its highest level in 19 years. The path of US interest rates affects Iran's markets through the value of the dollar and the global gold price.