Wednesday, July 30, 2025
The Federal Open Market Committee (FOMC) decided to keep interest rates steady at +4.25-4.50% during its fifth meeting of 2025. This decision followed a split vote, with two Fed governors advocating for a 25 basis point cut. Fed Chair Jerome Powell noted a moderation in economic growth, a stable unemployment rate of 4.1%, and a recent CPI inflation rate rise to +2.7%, with tariffs impacting consumption prices.
Market reactions were mixed; the Nasdaq closed up +31 points (+0.15%), while the Dow, S&P 500, and Russell 2000 fell -0.38%, -0.12%, and -0.86%, respectively. Major tech companies reported earnings: Microsoft saw a +24% year-over-year growth in earnings per share at $3.65, while Meta exceeded expectations with $7.14 per share on revenues of $47.52 billion. Conversely, Ford reported a Q2 earnings of 37 cents per share but noted $800 million in costs due to tariffs, causing shares to drop.
