The US Federal Reserve held its fifth meeting of 2025 from Tuesday (July 29) to Wednesday (July 30) against a backdrop of trade tensions, spurred on by the Trump administration’s tariffs. The central bank met analysts’ expectations by holding its benchmark rate in the 4.25 to 4.5 percent range. Chair Jerome Powell stated that although there were differences of opinion among the Federal Open Markets Committee members, they were clear on why they made their decisions, noting that inflation was tracking higher, but the job market remained stable. “The labor market looks solid, inflation is above target, and even if you look through the tariff effects, we think it’s still a bit above target, and that’s why our stance is where it is,” Powell said. The Fed chair also noted a slowing in gross domestic product, which he pointed out was up 2.5 percent in 2024, but initial data from…
