#FOMCMeeting
🏦 FOMC Decision – July 30, 2025
The Federal Open Market Committee voted 9–2 to keep the federal funds rate at 4.25%‑4.50%, marking the fifth consecutive meeting with unchanged rates.
Two Trump‑appointed governors—Michelle Bowman and Christopher Waller—dissented, calling for a 25‑basis‑point rate cut. It's the first dual dissent by governors in over 30 years.
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🗣️ Powell’s Comments
Chair Jerome Powell emphasized that the Fed’s decision reflects a “wait‑and‑see” approach, balancing inflation above target (~2.7%) against sustained labor market strength (around 4.1% unemployment).
He signaled no clear commitment to a September rate cut, noting that future policy moves depend on incoming data, including inflation and labor market reports.
Powell also cited risks tied to rising tariffs, which could re‑ignite inflation and weigh on growth.
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📌 Additional Highlights
Inflation remains elevated at about 2.7% year-over-year (June). The labor market stays solid, though growth has moderated in the first half of 2025.
Fed officials are monitoring incoming data, including a key jobs report for July and fresh inflation figures before the September FOMC meeting.
The Fed will continue reducing holdings of Treasury and mortgage-backed securities under its quantitative tightening plan.
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🔍 Summary
The Federal Reserve held interest rates steady amid inflation above target and a resilient, if slowing, economy. Despite political pressure, Chair Powell kept the policy stance cautious and data‑dependent. Notably, two governors broke ranks, pushing for an immediate rate cut—underscoring internal debate about the near‑term direction of monetary policy.
Decisions on rate cuts will hinge on upcoming economic data. The next FOMC meeting is scheduled for September, at which further easing may be considered if conditions warrant.
