FOMC Meeting – July 30, 2025
The Federal Reserve kept interest rates unchanged at 4.25%–4.50%, marking the fifth straight meeting without a move. The decision reflects a cautious, data-driven approach as officials monitor inflation trends, economic growth, and potential risks.
Key Points:
Dissent in the ranks: Governors Christopher Waller and Michelle Bowman voted for a 0.25% rate cut — the most high-level opposition within the Fed since 1993.
Economic backdrop: Q2 GDP grew by 3%, inflation remains above target at 2.7% (CPI), and the labor market added around 147,000 jobs in June with unemployment near 4.1%–4.2%.
Powell’s stance: Fed Chair Jerome Powell described policy as “modestly restrictive” and stressed that inflation risks outweigh labor market concerns for now.
Forward guidance: While rates stayed steady, possible cuts later in September or December remain on the table if economic conditions soften.
Global factors: Powell flagged uncertainty over new tariffs, including fresh duties on imports from Brazil.
Bottom line: The Fed is holding steady, but internal divisions signal growing pressure to ease policy later this year.