'Most Divided' Fed In 32 Years Refuses To Cut Rates (Again)

Since the last FOMC meeting, stocks have increased while gold and crude oil have decreased. Macro data indicates stronger growth but continued inflation decline. Market expectations for 2025 rate cuts remain unchanged from the previous meeting. Before today's decision, expectations were for no rate cut, with September being a possible time. The Fed held rates steady within the 4.25%-4.5% target range, acknowledging moderated economic growth in the first half of the year. Governors Waller and Bowman dissented, favoring a rate cut, marking the first double dissent since 1993. This dissent, coupled with recognition of moderating growth, suggests a dovish tilt from the Fed. The FOMC statement reflected changes like replacing solid economic expansion with moderate growth. Uncertainty about the economic outlook remains elevated. The market now anticipates rising odds of a September cut. All eyes are now on Powell's press conference.