The Federal Open Market Committee (FOMC) is holding a press conference today, July 30, 2025, at 2:30 p.m. ET, following its latest interest rate decision announcement at 2 p.m. ET. Markets widely anticipate the Federal Reserve to maintain current interest rates for the fifth consecutive meetingcurrent federal-funds-rate target range is 4.25%-4.50% [5]. Despite strong pressure from President Donald Trump to cut rates, the central bank is expected to hold steady [1] [2] [3] [4] [6]. Trump has publicly criticized Fed Chair Jerome Powell for not lowering rates more aggressively, even nicknaming him "Too Late" [6]. The Fed's independence from political oversight is a key issue in this ongoing debate, as it aims to set monetary policy without being influenced by short-term political agendas [3].
However, there is a growing divergence within the Fed itself regarding rate policy [3] [5] [6]. Governors Michelle Bowman and Christopher Waller have openly supported a rate cut in July, arguing that tariff-related inflation is likely transitory and that the labor market may be weaker than the low 4.1% unemployment rate suggests [1] [2] [3] [5] [6]. If they dissent, it would mark the first time two sitting governors have broken ranks at the same meeting in over three decades [3] [5]. While dissents are not uncommon among regional Fed presidents, they are rare among Board members [3] [5].Economic signals remain mixed, contributing to the Fed's cautious stance. While job growth has slowed and consumer spending is weakening, the unemployment rate remains historically low, and inflation, at 2.7% in June, is still above the Fed's 2% target [5] [6]. Tariffs are beginning to push up inflation, particularly for imported goods, which complicates the Fed's decision-making process [3] [5] [6]. The Fed is grappling with how to differentiate tariff-driven price increases from broader, sustained inflationary pressures [5].
Investors are closely watching for any clues from Chair Powell about the future direction of monetary policy, particularly regarding a potential rate cut at the September 16-17 meeting [3] [5]. The fed-funds futures market currently prices in a roughly two-thirds chance of a quarter-percentage-point rate cut in September [5]. Between now and the September decision, the government will release two more monthly jobs reports and two inflation prints, which will provide further data for the Fed to consider [5]. The FOMC holds eight regularly scheduled meetings throughout the year [7].
