CNBC Daily Open: Washington's house is divided over interest rates

A television station broadcasts Kevin Warsh, chairman of the US Federal Reserve, speaking after a Federal Open Market Committee (FOMC) meeting on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, July 29, 2026. Michael Nagle | Bloomberg | Getty ImagesHello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC's Daily Open.Abraham Lincoln warned that "a house divided against itself cannot stand." On interest rates, Washington is indeed divided.Federal Reserve Chair Kevin Warsh has signaled that a rate hike could be on the table. Governor Christopher Waller says rates could remain unchanged if inflation continues to cool. Vice President JD Vance wants them lowered.Given that, markets are in guessing mode on which option the Fed will circle in later this month.What you need to know todayU.S. markets rallied Thursday, following signals from Waller that he would support holding rates if inflation data came in as expected. The S&P 500 posted back-to-back gains, while the benchmark 10-year Treasury note yield fell to 4.77%. On Wednesday, the yield hit its highest level since November 2023.The probability that the Fed would rais...