Fed Policy Announcement (July 2025)

The FOMC made only one major change to its policy statement this month, acknowledging that growth moderated in the first half of the year. While Governors Christopher Waller and Michelle Bowman both dissented against the decision and preferred to cut rates, we suspect it will take more convincing evidence of labour market weakness or a near-absence of tariff effects in the July and August CPI reports to persuade the rest of the FOMC to vote that way come mid-September.