Federal Reserve Decision – July 31, 2025 The Federal Reserve has kept interest rates unchanged at 4.25%–4.50% for the fifth consecutive meeting. The decision was widely expected. Internal Division Two Federal Reserve officials voted in favor of a rate cut, citing decreasing inflation and a slowdown in the labor market. This is the first split vote in decades. Reasons for Holding 1. Inflation remains above the 2% target. 2. Economic growth continues. 3. The labor market remains strong. 4. Uncertainty stemming from global trade developments. Outlook Markets anticipate a possible rate cut in September or October. Future decisions will depend on upcoming labor and inflation data. The Federal Reserve emphasized a cautious, data-driven approach. Powell's Statement Chairman Jerome Powell reiterated that the Fed needs greater confidence that inflation is moving sustainably toward 2%. He did not commit to the timing of a cut. Summary: Details: Rate 4.25%–4.50% (unchanged) 2 votes against the cut Justification: Inflationary and trade uncertainty Market Reaction: Watching September data Fed Tone: Patient and data-driven Implications: Traders: We continue to expect a trend change. Borrowers: Elevated rates continue. Investors: Attention is focused on upcoming inflation and employment reports. follow me, and I'll give you signals to enter spot and futures, the only Latino trading from Bolivia