Federal Reserve Holds Rates Ahead July 30 Meeting

The Federal Reserve is expected to keep interest rates steady at 4.25% to 4.50% during its July 29-30 meeting, marking the fifth consecutive pause amid persistent inflation and economic uncertainties, despite pressure from President Trump to lower rates. Trump, who recently visited the Fed headquarters, indicated he believes the Fed Chair Jerome Powell is ready to cut rates soon, reflecting his desire to see interest rates decrease, although he acknowledged that firing Powell is not necessary or legally simple. The pause in rate changes affects various financial products, with high-yield savings accounts and money market accounts currently offering attractive returns around 4% to 5%, but these rates are expected to decline if the Fed moves to cut rates later this year. Market analysts anticipate at least two Fed rate cuts over the next nine months, influenced by the Trump administration’s preference for lower rates to reduce US interest payments on its growing national debt. Meanwhile, the State Bank of Pakistan is set to announce its monetary policy on July 30, with its committee previously maintaining the policy rate at 11% due to inflation and geopolitical risks. Overall, the US financial landscape is preparing for potential rate reductions that will impact savers and borrowers alike.