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2025-07-31 02:11:56
On Wednesday, the Federal Reserve, embroiled in internal divisions, decided to maintain its benchmark interest rate unchanged after withstanding fierce criticism from President Trump and objections from two senior officials. The Federal Open Market Committee (FOMC), which sets the overnight lending rate, voted 9-2 to pause the move, maintaining the federal funds rate in the 4.25%-4.5% range. While this rate only determines the cost of overnight interbank borrowing, it influences the price of funds throughout the economy. However, this decision was opposed by two board members, Michelle Baumann and Christopher Waller, who advocated for initiating rate cuts to reflect the outlook for controlled inflation and a potentially weakening labor market. This marked the first time since late 1993 that multiple board members had voted against an interest rate decision. (Refinitiv)
