Fed Holds Firm: Interest Rates Frozen in July 2025 Amid Market Jitters

The Federal Reserve just hit pause—again. No rate cuts, no surprises, just the same old holding pattern as inflation ghosts still haunt the economy.

Wall Street's crystal ball fails again

Traders betting on a dovish pivot got steamrolled. The Fed's 'wait-and-see' approach continues to strangle liquidity while Main Street drowns in debt. Powell's poker face remains unreadable as ever.

Digital assets yawn

Bitcoin barely flinched at the news—proof that crypto markets stopped caring about Fed theatrics years ago. Meanwhile, legacy finance clings to outdated rate hike fantasies like boomers to their fax machines.

The takeaway? The Fed's stuck in neutral while the financial system evolves without them. As usual.

The decision comes amid increased economic uncertainty derived from the United States’ America-First tariff plan unveiling in early April. Subsequently, the Fed has opted to remain committed to a wait-and-see approach to handling the war on inflation and future interest rate cuts.

According to Treasury data, the annual inflation rate in the US accelerated for the second consecutive month to 2.7% in June 2025. This marks the highest level since February, up from 2.4% in May and in line with expectations. The rising inflation is a surefire sign that rates shouldn’t be cut just yet; however, the US President and his administration remain adamant that the economy is doing just fine and cuts should come. As a result, Trump has been publicly bashing Fed Chair Jerome Powell for the Fed’s stalling of cutting rates, even going as far as suggesting Powell should step down.

The decision to leave interest rates unchanged will send ripples throughout the US Central Bank, with some suggesting that it could lead to Powell’s departure. Should Trump, who appointed Powell to the post during his first Presidency, decide to fire him, the replacement could spearhead several cuts before the year is over.