US Fed Meeting 2025 LIVE: Jerome Powell-Led FOMC Likely to Hold Rates Steady Amid Tariff Pressures, Inflation Worries

The US Federal Reserve is scheduled to announce the results of its much-awaited policy meeting today. Investors, economists and markets across the world are keeping a close eye on the Federal Open Market Committee (FOMC), which is scheduled to announce its interest rate decision at 2:00 pm EDT (11:30 pm IST).

Jerome Powell set to announce US Fed's interest rate decision amid inflation, tariffs, and economic uncertainty.

LIVE Updates: US Fed Interest Rate Decision Today

• Time: 2:00 pm EDT | 11:30 pm IST

• Expected Change: Rates likely to remain steady at 4.25% - 4.5%

• Focus Areas: Inflation, labor market flexibility, Trump tariffs, economic uncertainty

What’s Expected From Today’s FOMC Meeting

The consensus among economists is clear: The US central bank is likely to keep interest rates unchanged for the fifth consecutive meeting. This stance comes amid economic uncertainty, rising inflation concerns and tariff pressures due to recent political decisions.

In its previous June 2025 policy decision, the FOMC had maintained the federal funds target range at 4.25%-4.5%, citing stable economic expansion and strong labor market.

"In support of its goals, the committee has decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent," the FOMC said last month. 💬

💬 Expert View: Will Fed Stay Cautious

According to Niranjan Shastri, Associate Professor (Finance), NMIMS Indore:

"With CPI inflation remaining above 2.7% and resilience in the labor market, the FOMC is expected to maintain the status quo on rates."

He emphasized the Fed's independent decision-making ability and "wait and watch" strategy, especially in the wake of political pressure from President Trump's administration.

He said, "Although some FOMC members may disagree, there is likely to be a broad consensus on keeping rates steady. The Fed values data-based prudence more than political appeasement."

Shastri also indicated that a rate cut could be considered at the next meeting depending on signs of economic slowdown.

Markets React Ahead of Fed's Policy Decision

US stock indices opened slightly higher ahead of the Fed announcement:

• Dow Jones: +0.10% at 44,677.90

• S&P 500: +0.16% at 6,381.23

• Nasdaq Composite: +0.20% at 21,140.40

Investors remain cautiously optimistic as they remain accommodative, and expect interest rates to be cut in the future if inflation moderates.

Trump vs Powell: President Pressures Fed to Cut Rates

In a Truth Social post, President Donald Trump urged Fed Chair Jerome Powell to cut interest rates to support homebuyers and encourage refinancing:

“Second quarter GDP just came in: 3%, much better than expected! “Too late” Interest rates have to be lowered now. No inflation! Give people a chance to buy and refinance their homes!”

This comes after Trump announced a 25% tariff on India, adding another layer of complexity to the US economic landscape.

Is Inflation Still a Concern

Yes. Despite low unemployment and a strong labor market, the Fed still considers inflation to be “somewhat elevated.”

The FOMC said in June, “While fluctuations in net exports have weighed on the data, recent indicators suggest economic activity is growing at a solid pace… Inflation remains somewhat elevated.”

Powell further warned that commodity inflation could rise during the summer, further reinforcing the Fed's cautious stance.

Fed Watch 2025: Powell's Words Could Shake Markets

All eyes are on Fed Chairman Jerome Powell's press conference following the FOMC decision. Analysts will listen for:

• Any signs of interest rate cuts in late 2025?

• Updated economic projections

• The Fed's stance on tariffs, inflation and political pressures

For the time being, the market does not expect any surprises, but any deviation could lead to sharp fluctuations in the dollar, bond yields and stock prices.