Federal Reserve Maintains Interest Rate at 4.25–4.50% Despite Internal Disagreement

The Federal Reserve kept its interest rate unchanged at 4.25–4.50% in July, matching both previous levels and market expectations of 4.50%. The decision was made citing economic uncertainty and slow growth in the first half of 2025. However, the decision was not unanimous, with Fed Governors Waller and Bowman dissenting and advocating for a 25 basis point rate cut to stimulate the economy amid declining economic momentum.

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