The decision also drew dissent from two of the central bank’s governors, both appointees of US President Donald Trump, a first in more than 30 years.
Published On 30 Jul 2025
Despite pressure from the White House, the United States Federal Reserve will hold interest rates steady at 4.25-4.50 percent, on par with economists’ expectations as tariff-driven uncertainty weighs on the US economy.
The Fed, the US central bank, announced its decision on Wednesday as it wrapped up its two-day policy meeting.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated,” the Fed said in a statement.
Rates have held steady at this rate since December. Federal Reserve Chairman Jerome Powell has long argued that keeping rates consistent puts the central bank in a strong position to respond to inflationary pressures driven by US President Donald Trump’s tariffs.
“Recent indicators suggest that growth of economic activity moderated in the first half of the year. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated,” the Fed added.
Inflation ticked up to 2.7 percent, according to the consumer price index report released earlier this month.
But the decision also drew dissent from two of the central bank’s governors, both Trump appointees who agree with him that monetary policy is too tight.
This week’s meeting marks the first time in more than 30 years that two members of the Fed’s seven-person Washington-based Board of Governors voted against a rate decision at the con