Fed's Steady Rates Stir Debate Amid Inflation Concerns

The Federal Reserve kept interest rates stable, citing concerns over inflation risks, while emphasizing a cautious and data-dependent approach. Chair Jerome Powell highlighted the need to gather more information before making any decision on future rate cuts, amid dissent from some committee members and critiques from President Trump.


Devdiscourse News Desk | Updated: 31-07-2025 02:09 IST | Created: 31-07-2025 02:09 IST
Fed's Steady Rates Stir Debate Amid Inflation Concerns
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The Federal Reserve held firm on interest rates during its latest meeting, maintaining them steady against the backdrop of inflationary concerns. This decision comes as Chair Jerome Powell stresses the importance of controlling potential price pressures, diverging from President Trump's calls for immediate rate reductions.

Powell underscored the early stage of analyzing the economic impacts of new tariffs and other policies, with September's meeting looming as a potential pivot point. Investors' confidence in a rate cut next month dipped after Powell's cautious remarks, alongside the Fed's statement showing little indication of imminent rate changes.

The policy decision resulted from a 9-2 vote, with two governors preferring a rate reduction. As the Fed continues its wait-and-see approach, market reactions were mixed, and the economic outlook remains uncertain amid solid labor conditions but moderated growth.

(With inputs from agencies.)

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