Core Viewpoint - The Federal Reserve's decision to maintain interest rates in July reflects internal divisions and external pressures, raising concerns about potential impacts on financial markets, government debt, and economic stability [1][4]. Financial Market Risks - Delayed interest rate cuts by the Federal Reserve could exacerbate risks in the U.S. financial markets, as high rates increase corporate financing costs and compress profit margins, leading to investor concerns about corporate earnings and economic growth [1][2]. - Following the Fed's decision to keep rates unchanged, market expectations for a September rate cut dropped below 50%, indicating a shift in investor sentiment [1]. Government Debt Pressure - The ongoing high-interest environment could increase the U.S. government's debt burden, as rising interest rates lead to higher debt servicing costs, particularly in light of recent fiscal policies that may further inflate the deficit [3]. Economic Stagnation Risks - The Fed's delay in rate cuts may heighten the risk of "stagflation" in the U.S. economy, with recent employment data indicating a significant slowdown in job growth, which could lead to a potential recession if conditions do not improve [4]. - The labor market is showing signs of deterioration, with July's non-farm payrolls adding only 73,000 jobs, well below the expected 110,000, reflecting increased corporate caution [4].