Fed Holds Rates at 4.25%-4.5% Amid Inflation Uncertainty

- Federal Reserve keeps interest rates steady for fifth consecutive meeting. - Inflation risks and tariffs remain central to the decision. On July 30, 2025, the Federal Reserve announced it will maintain its benchmark interest rate in the target range of 4.25% to 4.5%. This decision marks the fifth consecutive Federal Open Market Committee (FOMC) meeting this year without a rate adjustment, and Federal Reserve Chair Jerome Powell cited inflation risks and tariff-driven economic uncertainty as key factors. Powell noted that the economic effects of existing tariffs are difficult to quantify. He cautioned that inflationary pressures may increase later in the year as supply chain costs ripple through the economy. As a result, the Fed will likely delay any rate cuts until at least the September FOMC meeting. The steady rate policy drew criticism from former President Donald Trump, who restated his long-standing view that the Fed should have reduced interest rates earlier to ease financial conditions. Trump persistently advocates for looser monetary policy, arguing it would boost economic growth. The Fed's decision has implications across borrowing markets, where consumer lending rates remain elevated. As of July 28, the average Annual Percentage Rate (APR) for credit cards surpassed 20%. Similarly, mortgage rates are high, with the average 30-year fixed-rate mortgage at 6.81% and the 15-year fixed rate at 6.06%. Auto loan costs, influenced by market rates and tariffs on imported vehicles and parts, also remain high; a five-year new car loan averages 7.3%, while a used car loan averages 10.9%. Analysts emphasize that housing and auto affordability challenges will likely persist, as they believe these issues will not subside quickly due to structural problems and lingering inflation, even if the Federal Reserve lowers interest rates in the future. According to data from CoinMarketCap on July 30 at 12:00 UTC, Bitcoin (BTC) was priced at $29,513, and its 24-hour trading volume grew by 1.5%. In the broader market, Ethereum (ETH) was trading at $1,867, a 2.1% increase, while Ripple (XRP) stood at $0.73, a 1.8% rise.