July 29–30 · Published August 20, 2025
Jerome H. Powell
July 29–30, 2025 FOMC Minutes
Our reading
The minutes are consistent with the statement because they reflect the same key assessments and decisions: the minutes note that economic activity moderated in the first half of the year, the unemployment rate remains low, inflation is somewhat elevated, and uncertainty about the outlook is high, all of which align with the statement's language, and they confirm the FOMC's decision to maintain the federal funds rate target range at 4-1/4 to 4-1/2 percent while continuing to reduce securities holdings, as stated in the statement.
Our reading compares the minutes of the July 29–30 FOMC meeting with the FOMC statement issued at the end of that meeting, three weeks before the minutes were published.
Vote
- Michael S. Barr
- Michelle W. Bowman ↓ dissented
- Preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting. Governor Bowman preferred at this meeting to lower the target range for the federal funds rate by 25 basis points to 4 to 4-1/4 percent in light of inflation moving considerably closer to the Committee's objective, after excluding temporary effects of tariffs, a labor market near full employment but with signs of less dynamism, and slowing economic growth this year. She also expressed her view that taking action to begin moving the policy rate at a gradual pace toward its neutral level would have proactively hedged against a further weakening in the economy and the risk of damage to the labor market.
- Susan M. Collins
- Lisa D. Cook
- Austan D. Goolsbee
- Philip N. Jefferson
- Adriana D. Kugler
- Alberto G. Musalem
- Jerome H. Powell
- Jeffrey R. Schmid
- Christopher J. Waller ↓ dissented
- Preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting. Governor Bowman preferred at this meeting to lower the target range for the federal funds rate by 25 basis points to 4 to 4-1/4 percent in light of inflation moving considerably closer to the Committee's objective, after excluding temporary effects of tariffs, a labor market near full employment but with signs of less dynamism, and slowing economic growth this year. She also expressed her view that taking action to begin moving the policy rate at a gradual pace toward its neutral level would have proactively hedged against a further weakening in the economy and the risk of damage to the labor market.
- John C. Williams
From the minutes
FOMC minutes
Absent and not voting: Adriana D. Kugler
Governors Bowman and Waller preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting. Governor Bowman preferred at this meeting to lower the target range for the federal funds rate by 25 basis points to 4 to 4-1/4 percent in light of inflation moving considerably closer to the Committee's objective, after excluding temporary effects of tariffs, a labor market near full employment but with signs of less dynamism, and slowing economic growth this year. She also expressed her view that taking action to begin moving the policy rate at a gradual pace toward its neutral level would have proactively hedged against a further weakening in the economy and the risk of damage to the labor market.
Consistent with the Committee's decision to leave the target range for the federal funds rate unchanged, the Board of Governors of the Federal Reserve System voted unanimously to maintain the interest rate paid on reserve balances at 4.4 percent, effective July 31, 2025. The Board of Governors of the Federal Reserve System voted unanimously to approve the establishment of the primary credit rate at the existing level of 4.5 percent.
It was agreed that the next meeting of the Committee would be held on Tuesday–Wednesday, September 16–17, 2025. The meeting adjourned at 10:15 a.m. on July 30, 2025.
What changed from the previous meeting’s minutes
- Two members voted against holding rates, preferring a 25 basis point cut; previous vote was unanimous.
- Statement changed from "uncertainty has diminished but remains elevated" to "uncertainty remains elevated."
- Statement changed from "economic activity has continued to expand at a solid pace" to "growth of economic activity moderated in the first half of the year."
- Participants noted slower consumption growth and a decline in residential investment, replacing prior solid consumer spending observations.
- Discussion added financial stability concerns, including stablecoin growth and Treasury market vulnerabilities.
- Participants noted tariff effects had become more apparent in goods prices, a shift from prior uncertainty about pass-through.
Summary generated automatically from the two documents.