Seema Shah, chief global strategist at Xinan Fund Management, said the Fed’s
hold, coupled with three dissenting votes, looked like an internal debate rather
than a consensus decision, confirming the market’s pre-meeting view of a
delicate balance. The statement added little new information, but the dissents
signal the Fed is not yet convinced the fight against inflation is won. While
rate cuts remain unlikely in the near term, another hike before year-end cannot
be ruled out. Xinan’s baseline remains no cuts through end-2026 as underlying
inflation eases, though the firm says its confidence in that outlook is low.
