Fed Defies Trump, Holds Interest Rates Steady – Urgent Breaking News
Rome, July 30, 2025 – In a move sure to reverberate through global markets and political circles, the Federal Reserve today announced it would leave interest rates unchanged, defying repeated calls from President Donald Trump for an immediate cut. The decision, made after a two-day meeting of the Federal Open Market Committee (FOMC), keeps the benchmark rate in a range of 4.25% to 4.50%, a level maintained since December. This is breaking news that impacts everyone from Wall Street investors to Main Street families.
Trump’s Public Disappointment & Internal Dissent
The announcement was met with swift and pointed criticism from President Trump, who, speaking from the White House, expressed his frustration. “I know the Fed will lower rates in September, not now,” he stated with a touch of irony, reiterating his belief that the central bank is “always too late.” The tension between the President and Fed Chair Jerome Powell has been a defining feature of Trump’s second term, stemming from the President’s desire for looser monetary policy to stimulate economic growth.
Adding another layer of complexity, two members of the Board of Governors appointed by Trump – Michelle Bowman and Christopher Waller – publicly dissented from the decision, advocating for a 0.25% rate cut. This internal division highlights the unusual political pressures facing the traditionally independent Federal Reserve. It’s a situation rarely seen, and one that raises questions about the future of the Fed’s autonomy.
Economic Slowdown & Inflation Concerns Fuel Fed’s Caution
The Fed’s decision wasn’t made in a vacuum. The central bank cited a “moderation” in economic activity in the first half of the year, pointing to slowing growth as a key factor. However, they also emphasized that inflation remains “elevated.” Specifically, the core inflation rate rose by 2.7% in June, and short-term inflation expectations have been creeping upwards, partly influenced by recent tariff increases.
Chair Powell, who was initially appointed by Trump during his first term, stressed the Fed’s commitment to its dual mandate of maximum employment and stable prices. He acknowledged the impact of the Fed’s actions on communities across the country but insisted that all decisions are guided by the central bank’s public mission. Powell also cautioned that the full effects of recent government policies, including tariffs, on the economy and inflation are still uncertain, adding a layer of complexity to the Fed’s forecasting.
Beyond the Headlines: Understanding the Fed’s Role & Future Outlook
The Federal Reserve plays a crucial role in managing the US economy. By adjusting interest rates, it influences borrowing costs for businesses and consumers, impacting everything from mortgage rates to business investment. Understanding the Fed’s actions is vital for anyone involved in financial markets or simply trying to plan for their financial future.
Historically, the relationship between the White House and the Federal Reserve has often been delicate. While Presidents can appoint Fed governors, the central bank is designed to operate independently to avoid political interference. Trump’s repeated public criticism of Powell represents a significant departure from this tradition.
Looking ahead, the September FOMC meeting will be closely watched. The Fed will be assessing incoming economic data, particularly inflation figures, to determine whether a rate cut is warranted. The ongoing trade tensions and their impact on prices will also be a key consideration. For investors and consumers alike, staying informed about the Fed’s decisions is more important than ever.
This situation underscores the interconnectedness of economic policy, political pressure, and global events. At archyde.com, we’re committed to providing you with the latest insights and analysis to help you navigate these complex issues. Stay tuned for further updates and in-depth coverage as this story develops.
