The FOMC meeting comes to an end after two days of intense discussion on the interest rate and various other monetary policies. Notably, the experts had predicted ‘no changes’ in the interest rates and holding until the next meeting. However, a portion of the people have anticipated different results, citing Donald Trump’s pressure and other factors. Here’s what happened and how it impacted the crypto market.
FOMC Meeting Primary Highlight: 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.
Source: The Kobeissi Letter, FOMC Meeting Voting
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 Updates and Powell’s Take on September 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.
Source: CME FedWatch Tool, Fed Rate Cut Odds
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.
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Pooja Khardia
Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section.
Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights.
Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry.
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