The U.S. Federal Reserve (Fed) held its benchmark interest rate steady at 4.25% to 4.5% on the 30th (local time). Despite pressure from U.S. President Donald Trump to lower rates, it opted to maintain the current rate as the market had anticipated.
The Fed made this announcement based on the results of the Federal Open Market Committee (FOMC) meeting held over two days in July. The Fed explained the reasoning for holding rates steady, stating, "The unemployment rate remains low, labor market conditions are solid, but inflation is still somewhat high and uncertainties regarding the economic outlook remain elevated."
Since the Trump administration took office in January of this year, the Fed has held rates steady in five FOMC meetings. President Trump unusually visited the Fed on the 24th to urge for a rate cut.
Nonetheless, Jerome Powell, the Fed chair, has not wavered from his cautious stance that the impact of the tariff policy raised by President Trump on prices should be monitored.
However, differences of opinion within the Fed emerged during this FOMC meeting. Out of 12 Commissioners, 11 attended, with 9 in favor of holding rates steady. Commissioners Michelle Bowman and Christopher Waller advocated for a 0.25 percentage point cut. It is reported that this is the first time since 1993 that more than two Commissioners have voiced opposing views at the FOMC.