The Federal Reserve issued its FOMC statement on July 30, 2025, highlighting ongoing economic growth but cautioning about elevated inflation and uncertainty in the outlook. The Committee aims to achieve maximum employment at a 2% inflation rate and will maintain the current federal funds rate range of 4-1/4 to 4-1/2 percent.
The low unemployment rate and solid labor market conditions continue, but inflation remains above target levels. To support its goals, the Fed decided not to adjust the interest rates for now, instead deciding to reduce its holdings of securities, which is expected to further lower borrowing costs and support maximum employment.
Fed officials will closely monitor incoming data and assess the evolving economic outlook before making any adjustments to monetary policy. If risks emerge that could hinder attaining its objectives, they are prepared to take action. The Committee’s decision reflects a balance between supporting employment and controlling inflation, with policymakers committed to returning inflation to 2% objective.
Source: https://www.federalreserve.gov/monetarypolicy/monetary20250730a.htm