The Federal Reserve has chosen to keep interest rates steady at 4.25% to 4.5% following its July FOMC meeting, marking the fifth straight time the central bank has held rates unchanged.
Despite mounting pressure from U.S. President Donald Trump and some market analysts to begin rate cuts, the Fed opted for a cautious approach. In its official statement, the Committee emphasized that it will continue monitoring economic data before making any adjustments.
This outcome aligned with broad market expectations—CoinGape previously reported a 98% probability that rates would remain unchanged. The Fed last altered rates in January, and the July decision follows similar moves in March, May, and June.
The vote showed a 9–2 split, with Fed Governors Christopher Waller and Michelle Bowman favoring a 25-basis-point cut. Their dissent had been anticipated earlier in the day.
President Trump has consistently called for rate reductions in recent months, arguing that stronger-than-expected GDP growth supports such a move. Just hours before the decision, he again urged Fed Chair Jerome Powell to act.
However, the Fed’s statement indicates continued caution, particularly due to uncertainty around the inflationary effects of Trump’s recently announced tariffs. The central bank appears to be in a wait-and-see mode as it evaluates potential risks.
With rates still on hold, investors are now looking ahead to Powell’s upcoming remarks for clues on whether the Fed may cut rates later this year. The next policy meeting is scheduled for September 16–17, with additional sessions in October and December.
