Overview

• The Federal Reserve left its benchmark interest rate unchanged at 4.25–4.50% for the fifth consecutive meeting to manage elevated inflation.
• Governors Michelle Bowman and Christopher Waller voted for a 25-basis-point cut, marking the first dual dissent on the FOMC since 1993.
• Chair Jerome Powell described policy as moderately restrictive, noted core inflation likely hit 2.7% in June, and highlighted tariff-driven price pressures.
• The FOMC reaffirmed its dual mandate of maximum employment and 2% inflation and confirmed its ongoing plan to shrink its holdings of Treasuries and mortgage-backed securities.
• President Trump condemned the decision as “too late” and predicted the Fed will cut rates in September, intensifying pressure on Powell.