Goldman Sachs analyst Robert Kaplan stated that the Federal Reserve's decision to hold rates steady in July was "absolutely" correct, urging policymakers to maintain an open stance until September. Kaplan argued that the complex factors influencing inflation make rigid forward guidance counterproductive.

Kaplan believes several key factors are currently at play, including inflationary pressures from AI infrastructure buildout, tariffs, labor constraints, and rising oil prices. Conversely, he noted that the application of AI is working in the opposite direction, accelerating the trend of disinflation.

The analyst suggested that Fed Chair Powell should use the upcoming Jackson Hole symposium speech to briefly explain the rationale behind the July decision to hold rates, rather than delivering a purely "philosophical" address.

Kaplan expressed greater concern about the long end of the Treasury curve than about the federal funds rate itself. He argued that the recent global rise in long-term bond yields reflects a structural supply-demand imbalance driven by persistently wide fiscal deficits, rather than Fed policy.