Federal Reserve Interest Rate Decision Remains Unchanged
Powell stated at the press conference that there is currently no urgent reason to cut interest rates and that future data, particularly related to inflation and the impacts of Trump’s tariff policies, needs to be monitored. Although the market had anticipated a possible rate cut in September, the FOMC statement did not explicitly indicate this direction, causing traders’ expectations for a September rate cut to be dampened. According to Fedwatch data, the likelihood of a rate cut in September has decreased from originally over 60% to about 40%.
On the economic front, the U.S. experienced a slowdown in growth during the first half of the year, but the labor market remains robust and inflationary pressures persist. Powell emphasized that retail inflation has not fully reflected the effects of tariffs, and future attention should be paid to changes in import prices and inventory. The next interest rate meeting will be held in mid-September.
