🔔 The US Federal Reserve holds interest rates: What does this decision mean for us?
The US Federal Reserve announced on Tuesday, July 30, 2025, that it will keep the interest rate at the same previous level, which is between 4.25% and 4.50%, in a move aimed at balancing inflation without affecting economic stability.
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💬 Why did they hold interest rates?
Despite significant political pressure from some parties, led by President Donald Trump, who called for a rate cut, the Federal Reserve's Monetary Policy Committee decided to hold off.
The voting result within the Federal Open Market Committee (FOMC) was 9 supporters against 2 objections, from Michelle Bowman and Christopher Waller. This is the first double dissent in the committee since 1993.
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📈 Current state of the US economy:
• Economic growth: GDP rose by 3% during the second quarter of 2025.
• Labor market: More than 100,000 new jobs were added in July.
• Inflation: Still at 2.7%, which is above the desired target of 2%.
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🗣️ What did Federal Reserve Chairman Jerome Powell say?
Federal Reserve Chairman Jerome Powell said:
"Our current monetary policy is not overly pressuring the economy, and we will continue to monitor data before making any new decisions."
He pointed out that the effects of tariffs and trade tensions are still under study, and decisions on future actions will not be rushed until the picture becomes clearer.
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🏦 What impact will the decision have on us?
• Mortgage, auto, and personal loans will remain relatively expensive.
• Bank savings yields will remain good compared to past years.
• Financial markets may experience some volatility, awaiting the September meeting.
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🔮 What do we expect later?
Some analysts expect the Fed to lower interest rates in the September meeting if inflation continues to decline and signs of economic slowdown appear. However, the decision will primarily depend on upcoming data.
