The Federal Reserve voted to keep its benchmark interest rate steady at 4.25% to 4.5%, maintaining a level set at the end of 2024 despite political pressure and internal dissent.
President Donald Trump has publicly pushed for rate cuts, arguing that inflation is under control and economic growth needs support. Two Fed governors, Michelle Bowman and Christopher Waller, also dissented, marking the first multi-governor opposition to a rate decision since 1993.
Read Chair Powell's full opening statement from the #FOMC press conference (PDF): https://t.co/2u8x0hnP1f pic.twitter.com/Cz8udPxrb5
— Federal Reserve (@federalreserve) July 30, 2025
In a press release, the Fed cited “moderated” economic growth, a strong labor market, and “somewhat elevated” inflation as reasons for holding the rate.
Chairman Jerome Powell defended the decision, stating the Fed must keep long-term inflation expectations anchored. “Even if you look through the tariff effects, we think [inflation] is still a bit above target,” Powell said.
He added that no decisions have been made ahead of the next meeting in September, pending more jobs and inflation data.
