More jobs, more spending and continued uncertainty about tariffs. Here's how that could impact the Fed's interest rate decision this week.

The Federal Reserve kicks off its July meeting on Tuesday, with Fed Chair Jerome Powell set to speak on Wednesday and deliver the central bank's latest interest rate decision. Markets are largely expecting the Fed to hold rates steady,

As of Tuesday afternoon, traders on the prediction market platform Kalshi put the chance of the Fed holding firm at 97%.

The Federal Reserve, by not cutting interest rates, is risking the creation of a deflationary downturn called a Kindleberger Spiral, a leading bond manager says.

Mortgage rates, which are primarily tied to 10-year Treasury yields in the bond market, are also sensitive to other factors, including investor outlook for future Fed moves. Economists will be closely listening to Fed Chair Jerome Powell's post-meeting remarks for any hints about rate cuts later this year.

The U.S. central bank, to President Donald Trump's chagrin, will likely leave interest rates unchanged at a policy meeting this week, but that's not to say there won't be a vigorous debate, with one if not two Federal Reserve governors possibly casting a rare dissent in support of lower borrowing costs.

Azoria Capital is suing Federal Reserve Chairman Jerome Powell to force the Federal Open Market Committee to open its interest rate meetings to the public.

Federal Reserve officials are determined to hold interest rates steady a little while longer, though an increasingly contentious debate at this week’s policy meeting may bolster expectations for rate cuts in the fall.