Fed Defies Rate Cut Pressure—Blames Trump’s Tariffs for Holding Steady in 2025

The Federal Reserve just slammed the brakes on rate cuts—and they’re pointing fingers at Trump-era tariffs. Here’s why markets are grinding their teeth.

### The Fed’s Standoff: Inflation vs. Political Fallout

No cuts, no mercy. The central bank’s holding pattern isn’t just about inflation—it’s a calculated sidestep of political landmines. Tariff turbulence from the last administration? Still messing with the playbook.

### Wall Street’s Iced Coffee Moment

Traders priced in cuts. The Fed served them lukewarm disappointment. Now everyone’s stuck rebalancing portfolios while Jerome Powell shrugs. Classic ‘data-dependent’ flex.

### The Punchline? Liquidity Theater

Another day, another Fed masterclass in kicking cans. Meanwhile, crypto’s volatility looks almost predictable. *Almost.*

The Federal Reserve has decided to keep its key interest rate steady at around 4.25%-4.5%, holding firm despite pressure from President TRUMP to cut rates. Fed Chair Jerome Powell said the central bank might have lowered rates further, but Trump’s broad tariffs created economic uncertainty, making officials more cautious about additional rate changes.

Fed Holds Rates for Fifth Time

On Wednesday, July 30, the U.S. Federal Reserve decided to keep interest rates steady at 4.25%–4.50% for the fifth straight time, matching what most analysts expected. The announcement came shortly after President Trump once again urged Fed Chair Jerome Powell to cut rates.

Before the decision, markets showed modest gains, with the Dow up by 0.06% and the Nasdaq rising 0.5%. The 10-year Treasury yield climbed to 4%, and the Dollar Index ROSE to 99.4.

“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the FOMC statement said.

Fed Chair Jerome Powell and other officials say they’re waiting to see how President Trump’s import tariffs affect inflation and the overall economy. Prices on items like appliances, furniture, and toys have gone up, and inflation has ticked higher, but not as much as some predicted.

By holding off on a rate cut, the Fed is likely to face more pressure from Trump, who has been pushing for lower borrowing costs and greater influence over the central bank.

Following the news, the crypto market didn’t react much, with Bitcoin price consolidating around the $118K level.