Fed Keeps Interest Rates Unchanged for Fifth Consecutive Meeting Amid Rising Economic Uncertainty

On July 30, 2025, the United States Federal Reserve announced its decision to maintain interest rates unchanged for the fifth consecutive meeting, keeping the policy rate within the 4.25%-4.50% range following a 25-basis-point cut last December.
The decision came after the July policy meeting, with market participants widely anticipating the unchanged stance. The policy statement and remarks from Fed Chair Jerome Powell provided key insights into the future policy outlook.

Investors saw virtually no chance of a rate cut in July, while pricing in a 64% probability of a 25-basis-point reduction in September. This market positioning left the US Dollar vulnerable to two-way risks following the announcement.

The revised Summary of Economic Projections (SEP), released in June, indicated that policymakers expected 50 basis points of rate cuts in 2025, followed by a 25-basis-point reduction in both 2026 and 2027. Of the 19 Fed officials, seven projected no cuts in 2025, two foresaw one cut, eight anticipated two cuts, and two predicted three cuts for the year.