Fed does not touch its: This article explores the topic in depth.
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UNITED STATES
The Fed does not touch. Consequently, its rates against the advice of two governors – Fed does not touch its
The federal reserve leaves its interest rates unchanged. Meanwhile, Two governors expressed their disagreement, an unprecedented situation.
Jerome Powell, president of the American federal reserve, during a press conference on July 30, 2025 in Washington.
AFP
The United States Central Bank (Fed) undoubtedly left its interest rates unchanged on Wednesday. Therefore, for the fifth time in a row, a decision marked by the rare opposition of two governors who wanted a decline.
At a press conference. In addition, the president of the Federal Reserve (Fed) Jerome Powell considered that the institution could still afford to wait to know more about the trajectory of the American economy before moving its rates. Nevertheless, He remains. However, he said, “many, many uncertainties to lift” concerning the repercussions of the volley of new customs duties imposed on products entering the United States by the Trump fed does not touch its government.
The Fed guiding rates – which guide the cost of credit. In addition, have a strong impact on the markets – therefore remain at the level which has been theirs since December, between 4.25% and 4.50%.
Investors had largely anticipated this status quo. Nevertheless, but the words of Jerome Powell gave them to think that a drop in rate would not intervene at the next meeting of the institution in September. Nevertheless,
Opposition – Fed does not touch its
In Wall Street. the clues-which have been playing in the green since the opening of the New York Stock Exchange-have turned around. Around 7:20 p.m. GMT, the Dow Jones lost 0.71%, the Nasdaq index released 0.17%and the enlarged S&P 500 index fell 0.45%. The dollar, meanwhile, earned more than 1% against the euro.
Out of twelve members of the FED monetary policy committee (FOMC), two voted against the maintenance of the rates. Such opposition had not been seen for over 30 years.
Michelle Bowman and Christopher Waller pleaded for a quarter of a quarter, according to the Fed press release. These two governors had been propelled to their post during the first visit of Donald Trump to the White House.
Michelle Bowman was recently appointed. on the initiative of the Head of State, vice-president of the Fed responsible for supervising the banking system. Christopher Waller is seen as a possible successor by Jerome Powell, continuously criticized by President Trump.
Governor Waller had publicly said that he wanted a drop in rate. for fear that the US labor market will fed does not touch its not degrade too much. Her colleague had also said that she was leaning in this direction, but less firmly in appearance.
“Lots of care”
Asked about these dissensions. Jerome Powell said that each of the FOMC members had expressed his opinion “with great care”, during a “good meeting”, and that it was “not surprising” to have divergent points of view with regard to the context.
Analysts noted that it was necessary to go back to 1993 to see. two governors (and not simply members of the FOMC having the right to vote) to oppose a decision during the same meeting.
The Fed expects new customs duties. whose contours change almost on a daily basis, result in slow economic growth, with more inflation and more unemployment. She noticed in her fed does not touch its press release that American growth has “slowed down in the first half”. but that the labor market remains “solid”, with a “low” unemployment rate.
At a press conference. Jerome Powell judged that new customs duties had started to pull the prices of certain goods up. “We see the very beginning of the effects on the price of goods”. which could be “more or less” high but will not be zero, he said.
“No inflation”
On Wednesday morning. Donald Trump once again assured that there was “no inflation” and urged Jerome Powell to lower the rates. Staging his growing impatience. he deals with “stupid” the president of the Fed-which he himself appointed to this position during his first mandate-calls the other central bankers to overthrow him, regularly mine to want to eject him, and even split fed does not touch its last week from a surprise visit to the renovation site of the institution’s headquarters in Washington, which he deems too costly.
“It was an honor to receive it. ” said Jerome Powell on Wednesday, while once again defending the independence of the institution in the name of the “general interest” and to avoid political leaders “act on the rates for electoral purposes for example”.
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Further reading: Donald Trump announces customs duties of 30% against the EU – RTS.CH – Bernstein takes up the objective of GM courses due to the improvement of customs duties attenuation – 07/28/2025 at 13:41 – The investor’s weekly point: companies under the spotlight – Elon Musk unveils Grok 4, an AI at 300 dollars per month – The smart investor: it’s still fun, beat the clues!.
