Fed Ends July 2025 Meetings Holding Rates at a 4.25/4.50 Fed Funds Target "Nine voting members were in favor of keeping rates on hold.
Two Fed governors, Christopher Waller and Michelle Bowman, voted to lower rates by 25 basis points.
The Fed statement indicates that it still sees high uncertainty from tariffs, and that it remains attentive to both sides of its mandate.
Powell remains particularly concerned about the one-off effect of tariffs on inflation. While corporations may say that they are attempting not to pass through the costs of the tariffs, these tariffs represent a level of charges on foreign "
Federal Reserve Sees An Increase in Uncertainty Around Unemployment and Inflation, Ends May 2025 Meeting Holding Fed Funds Rate at 4.25%/4.50% "In spite of significant pressure from the President to lower interest rates, the Federal Reserve has held interest rates at a 4.25% to 4.50% target at its May 2025 meeting..
The Fed is stuck because it sees inceased risks on both sides of its mandate. On one side, the unemployment rate could rise as a result of the administration's tariff and tax policies. On the other, Trump's announced tariffs create a significant risk of higher prices on just about everything that consumers and "