Federal Reserve holds its benchmark rate steady at today's FOMC meeting
CBS1 day
Federal Reserve Holds Interest Rates for Fifth Consecutive Meeting
Above: Jerome Powell, chairman of the US Federal Reserve, in Washington, D.C., on Wednesday, July 30, 2025. Image copyright: Al Drago/Bloomberg/Getty Images
The Spin
Democratic narrative
The Fed's decision to hold rates steady was a bold move from Powell and the most economically sound choice. Trump's relentless pressure campaign and threats to fire Powell would create unprecedented instability and hurt a fragile economy that could tip into "stagflation." The two dissenting governors being Trump appointees shows that this interference is far from over at the central bank. The tariff threat still looms.
Republican narrative
Powell's stubborn refusal to cut rates despite strong economic data and low unemployment demonstrates the Fed's disconnect from reality. With GDP growing at 3% and no meaningful inflation threat, keeping rates elevated only serves to handicap American prosperity and depress the labor market. Tariff concerns have failed to materialize, which makes one wonder if Powell's stance is more political than principled in nature.