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2025-07-31 02:08:08
The Federal Reserve held interest rates steady on Wednesday, a rare moment of disagreement in the decision. The statement did not specify when a rate cut might occur. The decision was dissented by two Trump-appointed governors, Waller and Bowman, who both argued that current monetary policy was too tight. This marked the first time in over 30 years that two governors dissented. The FOMC voted 9-2 to keep the benchmark overnight rate in the 4.25%-4.50% range, marking the fifth consecutive meeting without changing its stance. The Fed's statement stated, "The unemployment rate remains low, labor market conditions remain solid, and inflation remains moderately elevated." It also noted that economic growth "moderated somewhat" in the first half of the year, potentially strengthening the case for a rate cut at a future meeting if this trend persists. However, the statement also emphasized that "uncertainty about the economic outlook remains elevated" and noted risks to both inflation and employment targets. This language reflects the Fed's reluctance to cut rates without clarity on the path of inflation and employment.
