Federal Reserve leaves interest rates unchanged

Washington (TIP)- The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) has kept interest rates unchanged at 4.25 percent to 4.5 percent in the July 29-30 meeting for the fifth straight session. The central bank maintained the same level since December 2024 amid ongoing geopolitical tensions and tariff-related volatility.
In a statement, the Federal Reserve flagged that uncertainty about the economic outlook remains elevated. “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,” said the FOMC. During the FOMC meeting, the vote was not unanimous. There were two dissenting members, Michelle W. Bowman and Christopher J. Waller, who wanted the key rate to be trimmed by 25 basis points.
Despite concerns over slowing economic growth, the Fed was widely expected to hold rates steady. Ahead of the meeting, the CME FedWatch tool showed nearly 98 percent of market participants expected no change in the key lending rate.
Ahead of the announcement, the U.S. reported a strong increase in GDP for the second quarter, with the economy growing at three percent as against expectations of 2.3 percent.
As a result, U.S. President Donald Trump posted on Truth Social, his social media platform, the reading was three percent was “WAY BETTER THAN EXPECTED!” Using his nickname for Fed Chair Powell, Trump said, “‘Too Late’ MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!”