Powell Holds Firm: September Rate Decision Unclear Despite Trump's Pressure

Fed Remains Undecided on September Rate Hike

Federal Reserve Chair Jerome Powell reiterated on July 30th that the central bank has not predetermined its course of action regarding interest rates for September's FOMC meeting. This statement arrives despite President Trump's anticipation of a rate adjustment.

The Fed kept interest rates steady at 4.25%-4.50%, offering no explicit hints of an imminent rate cut. Powell emphasized that decisions will be based on a comprehensive evaluation of incoming economic data.

Crypto Market Reacts

The crypto market demonstrated sensitivity to the announcement. Within an hour of the Fed's decision, leading cryptocurrencies experienced notable declines.

• Bitcoin (BTC) fell 1.66% to $115,900.36.
• Ethereum (ETH) decreased by 3.27% to $3,688.
• XRP dipped 3.40% to $3.02.
• BNB dropped 2.31% to $773.54.
• Solana (SOL) slid 3.36% to $173.39.
• Dogecoin (DOGE) declined 4.17% to $0.2127.

Powell's Position

Powell characterized the current economic situation as having inflation slightly above the target and maximum employment at the target. This warrants a "modestly restrictive" policy approach.

He has consistently defended the Fed's independence and criticized Trump's tariff policies, which he believes could contribute to inflation.

Key Takeaways

• The Fed has not made a final decision on interest rates for September.
• Powell is prioritizing economic data over political pressure.
• The crypto market is susceptible to shifts in macroeconomic policy.
• Tensions between the Fed and the executive branch persist.