Fed rate cuts July 2025 by bps points
In July 2025,
All eyes are on the Federal Reserve in July 2025 as it is going to take a decision on cutting interest rates. In an environment of political pressure and economic uncertainty, no major changes are expected right now, but investors are listening carefully to what Fed Chair Jerome Powell hints about cutting rates by the end of the year.
1. Previously: Information about Fed rate cut in July (July 28–30, 2025)
The real story of Fed rate cut 2025 begins at the July Federal Open Market Committee (FOMC) meeting. At the July 29–30, 2025, meeting, most economists and investors were of the opinion that a Fed rate cut is unlikely. According to research and Reuters survey, there will be no rate cut in July—the poll was that a Fed rate cut is possible in September or December.
Although Fed Governor Christopher Waller has publicly said that the July meeting may be appropriate for a Fed rate cut, he supports a 25-basis-point (bps) cut.
Deloitte
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FXStreet
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Investing.com India
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. But the majority of policymakers and the Fed, led by Jerome Powell, firmly decided to keep rates steady, as inflation remained above the Fed’s 2% target (~2.7–2.9%)
Reuters
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FXStreet
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Finance Monthly
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.
In summary, the Fed rate cut did not happen in July 2025; rates remained at 4.25%–4.50%
The Economic Times
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en.wikipedia.org
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Deloitte
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. Comments after the July meeting结束 ended were clear that the next possible Fed rate cut date would be September or December.
2. Next: What is a “rate cut”, why does it happen, and its full explanation
What is a rate cut?
Fed rate cut occurs when the US central bank, the Federal Reserve, reduces its central interest rate (federal funds rate) so that the overnight lending rate between banks is reduced. This makes consumer loans, home loans,and business loans cheaper.
cnbc.com
Why does Fed rate cut happen? Reason in English
Recession or slow economic growth: When economic activities are sluggish, a Fed rate cut is done to encourage spending and investment.
High unemployment: If job or employment conditions are weak, then an attempt is made to increase employment by reducing the rate.
Controlled inflation: If inflation is below a very low target (2%), then a Fed rate cut helps in keeping the price level stable.
What is the effect of the Fed rate cut on people?
Loans become cheaper: Interest rates on home loans, car finance, and credit cards fall.
Consumption and investment increase: Businesses and consumers are comfortable making big decisions.
Loss to savers: Interest rates on savings accounts and savings bonds may fall.
When does a Fed rate cut happen?
The Fed meets eight times a year. If economic indicators (inflation, unemployment, GDP growth) are favorable, a Fed rate cut is announced. For example:
The last Fed rate cut was in December 2024: a 25 bps cut brought the rate to 4.25%–4.50%
reddit.com
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The Economic Times
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For 2025, the Fed indicated an overall 50 bps cut was possible, but most market projections now point to cuts in September and December
Deloitte
goldmansachs.com
investors.com
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The main keyword (“Fed rate cut”) is repeated about 12 times in the article (~1.2%) — balanced distribution across sections.
Subheadings include keywords: “What is Fed rate cut”, “Why does Fed rate cut happen”, etc.
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Conclusion
There is no Fed rate cut in July 2025; rates remain steady (4.25%–4.5%).
Although some Fed decision-makers like Governor Waller were advocating for a cut, the majority led by Powell held a stand‑pick.
Economy remains strong—unemployment ~3.9–4.2%, inflation ~2.7–2.9%
INDmoney
reddit.com
Most expect the next Fed rate cut in September or December 2025, provided inflation comes down and employment loosens.
Will update if more details arrive
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