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2025-07-31 08:02:22
[Market Analysis: Powell Shows Commitment to Inflation Control, Resisting White House Pressure and Internal Dissent] Federal Reserve Chairman Jerome Powell resisted pressure from the White House, overruling two dissenting officials who called for an interest rate cut, insisting the central bank must remain vigilant to inflation risks. The Federal Open Market Committee (FOMC) voted on Wednesday to keep interest rates unchanged for the fifth consecutive time, marking the first time in more than 30 years that two Fed governors dissented. In a press conference following the Fed's decision, Powell emphasized that the Fed is well prepared given the ongoing uncertainty surrounding President Donald Trump's tariffs and their economic impact. His comments struck a careful balance, tempering expectations for a September rate cut while not completely ruling it out. The Fed chairman noted several economic reports, including two months of employment and inflation data, ahead of the September meeting. "We will consider that information, along with any other information we have available, in our September meeting," he said. Investors, eager for a sign of a possible rate cut at the Fed's next meeting, reacted to Powell's comments by selling U.S. Treasuries and sending the dollar to its highest level since May. The S&P 500 index fell. Interest rate futures show that traders believe the probability of a September rate cut has dropped to around 40% from around 60% before the Fed's decision.
