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The Fed announces interest rates remain steady. Krasnov needs more board of governors votes [1]
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Date: 2025-07-30
The Fed resisted President Donald Trump’s push to cut interest rates, holding steady at a range of 4.25% to 4.5% despite inflation and employment concerns.
Donald Trump is no Ronald Reagan.
Along with Kevin Warsh, Mr. Waller and Ms. Bowman are possible contenders for Mr. Powell’s position when his term ends next May.
Michelle Bowman has dissented once before: Last September, she voted against the Fed’s decision to lower interest rates sharply — the first “no” vote by a governor since 2005. Explaining her rationale, she said that she was still worried about inflation and would have preferred a smaller cut.
This month, Christopher Waller said that he did not believe trade policy would lead to long-term inflation and said he would dissent at Wednesday’s meeting. Mr. Waller said he wished to return the Fed’s rate to “neutral,” meaning a level that neither speeds up nor slows down business activity.
The US Federal Reserve just voted 9-2 to hold interest rates steady at 4.25-4.5%, marking the fifth straight meeting without cuts. This defies President Trump's push for reductions, with dissenters citing economic slowdown. Powell emphasized monitoring inflation risks from tariffs. First FOMC split in 32 years.
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell gave little indication on Wednesday of bowing anytime soon to President Donald Trump’s frequent demands that he cut interest rates, even as signs of dissent emerged on the Fed’s governing board.
The Fed left its key short-term interest rate unchanged for the fifth time this year, at about 4.3%, as was expected. But Powell also signaled that it could take months for the Fed to determine whether Trump’s sweeping tariffs will push up inflation temporarily or lead to a more persistent bout of higher prices. His comments suggest that a rate cut in September, which had been expected by some economists and investors, is now less likely.
“We’ve learned that the process will probably be slower than expected,” Powell said. “We think we have a long way to go to really understand exactly how” the tariffs will affect inflation and the economy.
apnews.com/...
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