BlockBeats report, on July 30, the Federal Reserve held the federal funds rate steady at the 3.50%-3.75% range for the fifth consecutive time. The FOMC approved the decision by a 9-3 vote, with three regional Fed presidents voting in favor of a rate hike—the first time since 2016 that three votes consistently supported an increase.
Fed Chair Walsh stated at the press conference that the Fed has no "soft inflation target"; its sole objective has always been a 2% inflation rate, and if inflation remains persistently high, it will act decisively when necessary and appropriate. He emphasized that this decision should not be characterized as a "pause," and that the current inaction marks only the beginning, not the end, of the policy process. He added that market pricing is for observation only and will not guide policy decisions.
Wash also stated that U.S. economic activity remains robust, with strong productivity, capital spending, and AI investment; the labor market continues to be solid, and the country has "done quite well" in achieving full employment. He is currently conducting a thorough assessment of the economic situation. Regarding the dissenting vote this time, he noted that there was extensive discussion within the committee, but the final decision still received support from the vast majority of members.
On the market front, during the announcement and press conference, spot gold rose over $50 to break above $4,100, the U.S. dollar index fell below 101, the 2-year U.S. Treasury yield declined by approximately 8 basis points, and the 30-year yield rose by about 10 basis points. The interest rate market lowered its overall pricing for further rate hikes this year but still priced in roughly 15 basis points of expected rate hikes in September. Trump subsequently stated that Walsh wants rate cuts, but the Fed has a "political board."