Fed's Powell begins press conference

Fed's Powell begins press conference

Federal Reserve Chair Jerome Powell kicked off the post-meeting press conference on Wednesday, July 29, 2025, reaffirming the central bank's commitment to a data-dependent approach. The Federal Open Market Committee (FOMC) decided to maintain the federal funds rate within the 4.25% to 4.5% range, a decision that did not go unchallenged. For the first time in over 30 years, two board members—Michelle Bowman and Christopher Waller—dissented, both of whom were appointed during Donald Trump's first term [2].

Powell emphasized that no decision has been taken regarding a potential interest rate cut at the upcoming September meeting, despite growing speculation in financial markets. He stated, "We have made no decisions about September. We don’t do that in advance," adding that policy actions would be informed by incoming economic data before the next meeting [1].

The Fed's decision was influenced by a range of economic factors, including a slowdown in first-half growth primarily driven by weaker consumer spending. Powell also highlighted shifting economic concerns, moving beyond his previous focus on inflation to express caution about labor market risks. "There’s downside risk to the labor market in the coming months," he noted, indicating that the Fed will closely monitor employment data ahead of its next meeting [5].

Market expectations remain strong, with traders currently pricing in a 66% probability of a 25-basis-point rate cut at the September meeting [7]. However, Powell was clear that the central bank will not be swayed by these forecasts and will instead base its decision on the latest economic data.

The Fed's decision took place amid renewed political pressure from President Donald Trump, who has repeatedly urged the central bank to cut rates to boost economic growth. Powell, however, reiterated the Fed’s independence, stating that policy is guided by data, not political considerations [8].

In the coming months, the Fed will continue to monitor key economic indicators, including employment trends, inflation data, and consumer activity. Policymakers remain committed to a measured and deliberate process, emphasizing transparency and a data-driven approach in navigating an uncertain economic landscape.

References:
[1] Yahoo Finance – [https://finance.yahoo.com/news/feds-powell-says-no-decision-185047924.html](https://finance.yahoo.com/news/feds-powell-says-no-decision-185047924.html)
[2] CNBC – [https://www.cnbc.com/2025/07/30/fed-meeting-live-updates.html](https://www.cnbc.com/2025/07/30/fed-meeting-live-updates.html)
[3] Bloomberg – [https://www.bloomberg.com/news/live-blog/2025-07-30/fomc-rate-decision-and-fed-chair-news-conference](https://www.bloomberg.com/news/live-blog/2025-07-30/fomc-rate-decision-and-fed-chair-news-conference)
[4] Forbes – [https://www.forbes.com/sites/tylerroush/2025/07/30/fed-decides-against-interest-rate-cut-but-powell-faces-first-double-dissent-in-decades/](https://www.forbes.com/sites/tylerroush/2025/07/30/fed-decides-against-interest-rate-cut-but-powell-faces-first-double-dissent-in-decades/)
[5] Yahoo Finance – [https://finance.yahoo.com/news/divided-fed-holds-rates-steady-again-defying-trump-180230013.html](https://finance.yahoo.com/news/divided-fed-holds-rates-steady-again-defying-trump-180230013.html)
[7] CME FedWatch tool – [https://www.cmegroup.com/market-data/interest-rates/fedwatch.html](https://www.cmegroup.com/market-data/interest-rates/fedwatch.html)