US Fed Meeting Outcome: Jerome Powell-Led FOMC Keeps Interest Rates Unchanged For 5th Time In A Row | Economy News
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US Fed Meeting Outcome: The move comes hours after US President Donald Trump repeated his call for a rate cut.
US Federal Reserve Chair Jerome Powell. (Photo Credit: AP)
US Fed Meeting Outcome July 2025: The US Federal Reserve on Wednesday, July 30, kept its key interest rates unchanged at 4.25%-4.50% for the fifth time in a row, in line with the market expectations. The move comes hours after US President Donald Trump again pressured Powell to cut interest rates.
Ahead of the decision, the US markets were trading slightly higher, with the Dow 30 trading up by 0.05% and the tech-heavy Nasdaq trading up by 0.45%. The US 10-year bond yields were also up by 21 bps at 4.35%. The Dollar Index was also up by 0.57% at 99.44, as of 11:25 pm IST.
In its statement, US Fed Chairman Jerome Powell-led FOMC on Wednesday said, “Although swings in net exports continue to affect the data, recent indicators suggest that growth of economic activity moderated in the first half of the year. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.”
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate, the FOMC added.
“In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent,” the Committee said.
It said the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 per cent objective.
The US central bank’s officials expect two rate cuts this year, as per the June 2025 ‘dot plot’.
US President Donald Trump has urged Powell multiple times to cut rates. On Wednesday, Trump in a post on Truth Social said, “2Q GDP JUST OUT: 3%, WAY BETTER THAN EXPECTED! ‘Too Late’ MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!”
Trump had earlier called the US Fed chairman ‘Mr Too Late’ for not cutting interest rates.
Trump argues that the Fed in general and Powell in particular are costing US taxpayers hundreds of billions of dollars in interest payments by not reducing borrowing costs. Yet Fed officials don’t think it’s their job to reduce rates the government pays on Treasury notes and bonds.
Inflation in the US accelerated to 2.7% in June from 2.4% in May, the government said earlier this month, above the Fed’s 2% target. Core prices, which exclude the volatile food and energy categories, rose to 2.9% from 2.8%.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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