Federal Reserve Holds Rate at 4.25–4.50% in July 2025 with Two Dissents Favouring Immediate Cut

The Federal Open Market Committee voted nine to two at its July 2025 meeting to maintain the federal funds rate target range at 4.25% to 4.50%, according to the press release published by the Federal Reserve Board on its website. The decision leaves rates unchanged for a fifth consecutive meeting.

The two dissents came from Governors Michelle Bowman and Christopher Waller, both of whom favoured a reduction of 25 basis points at this meeting.

POLICY STATEMENT

The July statement itself said only that inflation 'remains somewhat elevated' and that uncertainty about the economic outlook 'remains elevated'; it made no judgement on whether tariff effects on prices would prove temporary.

The statement said the unemployment rate remains low and labour market conditions remain solid.