Fed Holds Rates Steady — Even After Trump’s Push for a Cut

Despite President Donald Trump publicly urging the Federal Reserve to cut interest rates, the Fed stayed the course. In their most recent meeting on July 30, 2025, the central bank left rates unchanged for the fifth time this year, holding the federal funds rate between 4.25% and 4.50%.

What’s Behind the Decision?

Even though inflation has cooled from its peak, it’s still not quite where the Fed wants it. Their goal remains a 2% target, and current data shows inflation lingering just above that mark. So instead of reacting to political pressure, Fed Chair Jerome Powell reinforced that decisions will remain data-driven and independent of outside influence.

Two members of the committee—Trump-appointed governors Michelle Bowman and Christopher Waller—did vote in favor of a rate cut. But the majority sided with caution, wanting more evidence before making a move.

What This Means for Mortgage Rates

While the Fed doesn’t set mortgage rates directly, its decisions influence the financial markets that do. After the announcement, 30-year fixed mortgage rates nudged slightly lower to around 6.72%. But don’t expect a dramatic drop—rates are still high compared to pre-pandemic levels, and homebuyers are feeling the pinch.

💡 Tip for Buyers: A small dip in mortgage rates might not change monthly payments significantly, but it could open up more buying options if you’re already close to your budget limit.

What to Watch Going Forward

The Fed made it clear: they’re not taking any next steps until they see how the economy performs over the next few months. Key indicators like jobs, inflation, and consumer spending will guide their next move.

Many analysts are watching the September meeting closely. There’s still a chance we could see a rate cut before the year ends—especially if economic data weakens.

–

While political figures may push for action, the Federal Reserve is staying committed to a slow and steady approach. And while this may frustrate those hoping for faster relief, it also signals stability—which is something the housing market needs more than ever.

📞 Let’s connect today and map out your smartest next step.

👉 Schedule a consultation or call/text us at 602.529.8356