The Federal Reserve Maintains the Benchmark Rate Under Control

• The Federal Reserve has kept the benchmark rate at a level of 4.25% - 4.5%.
• Two members of the board expressed disagreement with the Federal Reserve's decision.
• Economic growth has accelerated, inflation remains elevated.

Main Facts

The Federal Reserve has decided to maintain the benchmark rate at a level of 4.25% - 4.5%. This decision was made at a meeting held on July 30, 2025, and became significant as two board members expressed disagreement with it. This is the first instance of such a dissent since the 1990s, when a similar dissent occurred.

It is noted that economic growth has accelerated in the first half of the year, while inflation has remained elevated. Federal Reserve officials indicated that the Trump administration is trying to pressure the central bank to lower rates, hoping for improved economic conditions.

Two members of the board, appointed by Trump, opposed the decision to keep rates unchanged, citing rising risks for the economy due to President Trump's tariffs. This points to increasing political pressure and uncertainty in the economic environment.

Perspectives

Economists believe that the Federal Reserve is resisting rate cuts in the near future, in order to have the ability to respond to potential economic difficulties. The next Federal Reserve meeting is scheduled for September 2025, and the chances of a rate cut are considered quite high.

Trump continues to criticize the leadership of the Federal Reserve, expressing expectations of changes in policy, which could include the appointment of a new Federal Reserve chair, potentially leading to a serious political shift.

Tags: USA/Economy