The US Federal Bank (FED) and July maintained the interest rates unchanged in the range of 4.25-4.50%.

It is worth noting that two members, Michel Bowan and Christopher Waller, were in favor of reducing interest rates by 0.25%.

Markets are now turning their attention to whether the Fed is ready to “turn the switch” in September, reducing interest rates for the first time since December 2024.

Analysts expected that the US Federal Bank would maintain its reference rate in the range of 4.25% -4.50% after the end of a two-day policy meeting on Wednesday, resisting Trump’s pressure to reduce borrowing costs.

Trump presses

Meanwhile, the reaction of US President Donald Trump, who has launched a few attacks on Fed President Jerome Powell, is expected to be in interest, asking him to reduce interest rates.

“Second quarter. GDP just came out, 3%, much better than expected. The Fed must now reduce the interest rate. There is no inflation! Let people buy and refinance their home! “, Trump wrote on Truth Social, referring to Fed Commander Jerome Powell, just hours before the Central Bank announced that she is keeping interest rates unchanged.

Earlier, last week, Trump called Powell “stupid” because he did not comply with the White House demand for a large reduction in borrowing costs,

A few days later, he visited the Fed offices and talked to Powell. “I would love to reduce interest rates,” Trump said, concluding his visit, while the Fed president was standing next to him, with his face inexplicable.

Fed’s announcement

Although fluctuations in net exports continue to affect the data, recent indicators suggest that the increase in economic activity was mitigated in the first half of the year. The unemployment rate remains low and the conditions in the labor market remain constant. Inflation remains somewhat increased.

The Commission seeks to achieve maximum employment and inflation at a rate of 2% in the long run. The uncertainty about economic perspectives remains increased. The committee is closely monitoring the dangers for both sides of its double command.

In support of its goals, the Commission decided to maintain the target range for the federal capital interest rate at 4-1/4 to 4-1/2%. When examining the extent and timetable of additional adjustments to the Federal Increased Funds range, the Commission will carefully evaluate incoming data, evolving prospects and balance of risks.

The Commission will continue to reduce its participation in public titles, bureaucrats and mortgage titles. The Commission is strongly committed to supporting the highest possible employment and to restore inflation to its 2%target.

In the evaluation of the appropriate direction of monetary policy, the Commission will continue to monitor the impact of incoming information on financial prospects.

The Commission will be ready to adapt the attitude of monetary policy as appropriate if there are risks that could prevent the committee’s objectives from achieving. Commission estimates will take into account a wide range of information, including evidence of labor market conditions, inflationary pressures and inflationary expectations, as well as financial and international developments.

In favor of conservation of interest rates in the previous Eyros, Jerome H. Powell, President, John C. Williams, Vice President, Michael S. Barr, Susan M. Collins, Lisa D. Cook, Austan D. Goolsbee, Philip N. Jefferson, Alberto G. Musalem and Jeffrey R. Schmid. Michelle W. Bowman and Christopher J. Waller voted against, who preferred to reduce the target range for the federal funds by 1/4 of the percentage unit at this meeting. Adriana D. Kugler was absent and not voted.

Following the decision, US Deputy Finance Minister Michael Follander told Fox News that data is not supporting the maintenance of US Federal Bank interest rates where they are.