Federal Reserve Holds Rates Steady
The Federal Reserve, on July 30, 2025, maintained the federal funds target rate at 4.25% – 4.50%. This meeting was notable as it marked the first time in over three decades that two governors, Christopher Waller and Michelle Bowman, dissented from the decision.
In an analysis of current economic conditions, Fed Chairman Jerome Powell highlighted that while the labor market remains steady, there are looming risks. Private sector job openings have decreased, a trend attributed to stricter immigration policies. Additionally, ADP reported a gain of 104,000 jobs in July, rebounding from a loss of 23,000 in June.
Meanwhile, the U.S. GDP grew at an annualized rate of 3.0% in the last quarter, rebounding from a contraction of -0.5% in Q1 2025, mostly driven by a decline in imports. President Trump announced a 25% tariff on Indian exports beginning August 1, citing trade imbalances as the primary reason.
