By keeping rates where they are, the Central Bank is indicating the economy is holding steady.
After months of speculation, market murmurs, and a rather loud President, the Federal Reserve announced at its July 30th meeting that it will continue to hold the Federal Funds rate steady at 4.25 percent to 4.5 percent. For Wall Street, the news sparked a predictable flurry of readjustments as investors must now wait until mid-September, at the earliest, for any type of rate cut. But for Main Street, the Fed’s decision may be more about what isn’t happening than what is.
That’s because what really matters isn’t the cost of borrowing inching lower – it’s the broader message the Fed is sending about where the economy stands, and what business owners should expect in the second half of 2025.