By John Meyer, consultant in financial affairs – Eurasia Business News, July 30, 2025. Article no. 1671

The Federal Reserve announced on July 30, 2025, that it will hold its benchmark interest rate steady at the current range of 4.25% to 4.5%, marking the fifth consecutive meeting with no change. Investors anticipated the move. Notably, two Fed governors, Michelle Bowman and Christopher Waller, preferred a rate cut and dissented.

The Federal Open Market Committee (FOMC) voted 9-2 to maintain rates, with dissenting votes from two Fed governors, Michelle Bowman and Christopher Waller, both appointees of President Trump. These two officials argued for an immediate rate cut, believing inflation is under control and the labor market shows signs of weakening.

The Fed’s statement noted that economic growth moderated in the first half of the year, inflation remains somewhat elevated, and uncertainty about the economic outlook remains high.

Chair Jerome Powell’s post-meeting remarks are expected to provide insights on whether the Fed might cut rates at its next meeting in September, but no clear signal was given today.

The decision comes despite public pressure and criticism from President Trump, who had urged the Fed to aggressively cut rates to support borrowing and the housing market, proposing cuts of up to 3 percentage points. However, policymakers remain cautious, focusing on data rather than political pressure.

Market expectations suggest a moderate likelihood of a quarter-point rate cut at the September meeting, but today’s vote underlined the Fed’s current preference for a watchful, wait-and-see approach.

The U.S. economy’s Gross Domestic Product (GDP) grew at an annualized rate of 3% in the second quarter of 2025, rebounding strongly from a 0.5% contraction in the first quarter. This growth exceeded economists’ expectations of around 2.4% to 2.6% and reflects a significant recovery.

Read also : Gold : Build Your Wealth and Freedom

In summary, the Fed kept rates unchanged at 4.25%-4.5% in a divided vote, with two officials supporting a cut, but the central bank overall signaled continued caution amidst ongoing inflation and economic uncertainties.

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© Copyright 2025 – Eurasia Business News. Article no. 1671