Fed’s Rate Pause Was Its Most Contentious Decision in Decades

When the Federal Reserve announced that it would hold interest rates steady for a fifth consecutive meeting, it also revealed that two top Fed officials had voted against the decision—something that hasn’t happened since 1993, Matthew Cullen reported for The New York Times.

Powell stressed that rate cuts could only be made after evaluating additional economic data. I Photo: Federal Reserve Board

The dissenting officials favored a rate cut, which President Trump and his allies have been demanding for months.

The president, who has publicly floated the idea of firing Fed Chair Jerome Powell over the central bank’s refusal to lower rates, said today that he expects a rate cut in September.

Powell, however, stressed that any such decision could only be made after evaluating additional economic data. In related news, U.S. economic growth slowed during the first half of the year, with tariffs placing pressure on both consumers and businesses.