Fed keeps interest rates at 4,5% and ignores Trump's calls for a cut

• Fed keeps interest rates at 4,5% for the fifth time
• Fed split highlights uncertainty over economy
• Trump pushes for immediate interest rate cut

The Federal Reserve decided to keep its benchmark interest rate at 4,25% to 4,5% for the fifth consecutive meeting, despite growing pressure from current U.S. President Donald Trump for a more aggressive cut. The decision was marked by a rare internal dissent: Governors Christopher Waller and Michelle Bowman voted for a 0,25 percentage point cut, something not seen in over 30 years.

The Fed committee revised its view on US economic activity, highlighting that growth "moderated" in the first half of 2025. Gross domestic product, which had fallen 0,5% in the first quarter, rose to 3% in the second, driven by the anticipation of imports ahead of the implementation of Trump's proposed trade tariffs.

Despite the improved figures, the central bank adopted a more cautious tone. The previous outlook for "solid" growth was downgraded, and the Fed reiterated that the labor market remains strong, but that inflation remains "somewhat elevated." Uncertainty about the direction of the U.S. economy was emphasized, with officials stating that many risks remain on the horizon.

Hours before the announcement, Trump again publicly criticized Fed Chairman Jerome Powell, using Truth Social to push for an immediate rate cut. "Too late, NOW WE NEED TO LOWER RATES," he wrote. He argued that maintaining high interest rates hurts homebuyers and increases the cost of the national debt.

Meanwhile, the market is already projecting the next Fed meeting, scheduled for September 16 and 17, as the likely occasion for the start of cuts in 2025. Analysts and investors will be paying close attention to the upcoming inflation and employment data, which will be released later this week, to assess whether there will be room for a change in monetary policy.

Christopher Waller has argued that the implemented tariffs cause specific inflationary effects, which would allow the Fed to refocus on full employment, one of its core goals. The committee's internal divisions could reinforce this stance in future decisions.