Overview

• The Fed kept its benchmark federal funds rate at 4.25%–4.50% for the fifth straight meeting, citing incomplete data on tariff effects and elevated prices.
• Governors Christopher Waller and Michelle Bowman dissented in a 9-2 vote, recording the first dual dissent among board members since 1993.
• Chair Jerome Powell stressed that inflation remains above the Fed’s 2% goal and that tariff-driven price shocks warrant a cautious, data-dependent approach.
• President Trump intensified his public criticism on Truth Social, calling Powell “Too Late, Too Angry, Too Stupid & Too Political” and targeting the Fed’s costly headquarters renovation.
• After the meeting, the CME Group’s FedWatch tool showed odds of a September rate cut falling to about 40%, reflecting growing skepticism of near-term easing.