FOMC Meeting July 2025 Highlights: Key Changes and Market Impact

The highlights of the FOMC meeting are now officially out, following the Fed’s completion of its two-day discussion on interest rates and other monetary policies. Even before the outcome, experts had predicted the ‘no change’ result and further delays until September only. Interestingly, some people took a different view due to high political pressure on Jerome Powell. Let’s discuss the changes and their impact on the crypto market.

FOMC Meeting Highlights: No Change in Rates

An unchanged interest rate at 4.25% to 4.5% is the result of this July 2025 FOMC meeting. Notably, this is the fifth consecutive decision to keep the rate cuts or hikes on hold, and aligns with experts’ predictions.

However, the decision saw a split between the Fed members as Governors Christopher Waller and Michelle Bowman dissented in favor of a 25-bps rate cut. Notably, Donald Trump has appointed the two, and they share the same opinions on lower rates, citing strong GDP data.

Yet, the rates remain the same with a 9-2 vote as the Fed remains cautious due to the concerns about the effects of Trump’s tariffs.

Trump Tariff and September’s Odd  Highlights in the FOMC Meeting

The Trump trade war with multiple nations is still in process, with the latest imposition of a 25% tariff on India and a new trade deal with South Korea. Amid this, Trump has extensively highlighted the need for interest rate cuts, claiming that every point costs the U.S. $365 billion.

🚨 BREAKING – President Trump goes SCORCHED earth on Jerome Powell.

“Each point this point costs us $365 BILLION, It’s all because of the Fed.” pic.twitter.com/GPk6O8oAwP

— The Patriot Oasis™ (@ThePatriotOasis) July 30, 2025

He highlights that there’s a lot of money coming in and there’s no inflation, so we should lower it, but the gentleman (Powell) is keeping up. Despite these remarks, Powell keeps the rates unchanged for the 5th time in the FOMC meeting, citing U.S. housing secretary activity as weak and the inflation “somewhat elevated.”

The Fed Chair emphasized that the timing is important, as cutting rates too early undermines inflation control and cutting too late could damage the labor market. He also commented on tariffs, noting that they are driving up the prices of goods, and stated it is too early to assess tariffs’ full effects.

SUMMARY OF FED CHAIR POWELL’S COMMENTS (7/30/25):

1. Current policy stance “leaves us well positioned”

2. Moderation of growth reflects a slowdown in consumer spending

3. Activity in the US housing sector remains weak

4. Inflation in the US remains “somewhat elevated”

5.…

— The Kobeissi Letter (@KobeissiLetter) July 30, 2025

Notably, the September rate cuts are still unconfirmed. Powell added, “We have made no decisions about September.” However, the markets still anticipate a rate cut, and the CME FedWatch Tool predicts a 45.2% chance of a 25-bps rate cut in September and a 48.7% chance in October.

In this, Donald Trump’s briefing is an add-on where he added that he has heard of potential changes in the September FOMC meeting.

Stock and Crypto Market Tumbles

The major U.S. market tumbled on the FOMC meeting outcome, as investors were disappointed with the Fed’s decision. The S&P 500 fell 0.1%, the Dow dropped 0.4% and the rest were at similar levels.

The hawkish tone of Powell in the conference and the lack of confirmation on the September decision became the prime catalyst. In this, digital assets like Bitcoin slipped 0.9% and the rest of the altcoins followed.

BNB, FLOKI, and others saw steeper declines than Solana and XRP, as the White House crypto policy report mentioned them for the stockpile.

Notably, the crypto market crash was already in action with investors’ cautious approach to these events. The recovery is still in picture, as the greedy sentiments remain persistent in the market.