Overview

• At its July 30 meeting the Federal Open Market Committee voted 9–2 to maintain the federal funds rate at 4.25%–4.50% for the fifth straight session.
• Governors Michelle Bowman and Christopher Waller dissented in favor of a 25 basis point cut, marking the first time since 1993 that more than one governor broke with the majority on a rate decision.
• On Truth Social President Trump labeled Chair Jerome Powell a “stubborn MORON” and urged the board of governors to seize control of monetary policy if he continues to resist rate cuts.
• Bowman and Waller argued that tariff-driven price increases are likely temporary and warned that further delays in rate reductions could weaken the labor market and slow economic growth.
• Powell defended the Fed’s independence and stressed the importance of evaluating tariff impacts in light of sustained uncertainty over the economic outlook.