30.07.2025 22:31
The U.S. Federal Reserve announced its interest rate decision. The Fed kept the interest rate unchanged within the range of 4.25% to 4.50%, in line with market expectations. For the first time since 1993, two Fed members voted against the decision.
The FED kept the policy interest rate unchanged, maintaining it in the range of 4.25-4.50 percent.
FED KEPT THE POLICY INTEREST RATE UNCHANGED
The Federal Reserve (FED) announced the interest rate decision that global markets have been eagerly awaiting. The FED did not change the interest rate once again, in line with expectations. The FED kept the policy interest rate in the range of 4.25-4.50 percent. Thus, the Fed has not made any changes to interest rates in the last 5 meetings. In the meeting held in June, FED officials had predicted two interest rate cuts by the end of the year.
FIRST TIME SINCE 1993
The decision was made with 9 votes against 2, while FED members Michelle Bowman and Christopher Waller voted against the decision. This marks the first time since 1993 that two Fed members voted against a decision in a FED meeting.
"GROWTH IN ECONOMIC ACTIVITY MODERATED"
The decision text stated, "Although fluctuations in net exports continue to affect the data, recent indicators show that growth in economic activity moderated in the first half of the year." The FED had previously used the phrase "at a solid pace" for growth.
The statement noted that inflation continues to remain somewhat high, and the uncertainty regarding the economic outlook also continues to be high.
INTEREST RATE CUTS WERE PAUSED IN JANUARY
The Fed, with the progress recorded in inflation, made its first interest rate cut in September last year after a 4-year hiatus, reducing the policy interest rate by 50 basis points.
In November and December of last year, the Fed also cut the policy interest rate by 25 basis points each, but in January, it paused the interest rate cuts it had made in three consecutive meetings last year. The Fed did not make any changes to the policy interest rate in its meetings in March, May, and June.
In the U.S., inflation, which reached an annual rate of 9% in June 2022, the highest level since 1981, was recorded at an annual rate of 2.7% in June.