Fed Holds Rates at 4.25%-4.5% Amid First Dual Dissent in Decades

The U.S. Federal Reserve kept its benchmark interest rate unchanged at 4.25%-4.5% on Wednesday, a widely anticipated move. In a notable shift, Fed governors Michelle Bowman and Chris Waller dissented, calling for a 25-basis-point rate cut — marking the first dual dissent since December 1993, according to Carson Group strategist Ryan Detrick.

The Fed’s statement highlighted moderate economic growth in the first half of the year, with unemployment remaining low and labor markets solid. Inflation, however, is still elevated. Markets reacted modestly: Bitcoin (BTC) slipped 0.5% to $117,400, while the S&P 500 and Nasdaq edged down from earlier gains.

Attention now turns to Fed Chair Jerome Powell’s comments for clues on a potential September rate cut. Pressure on Powell to ease policy has intensified, particularly from President Trump, amid slowing economic indicators.

Ahead of the decision, prediction market Polymarket showed a 98% probability of no rate change. A high-profile trader, “Spice,” initially placed a $1.3 million bet on steady rates but trimmed the position to $724,000 just before the announcement, data from Lookonchain revealed.

The CME FedWatch tool currently shows nearly a 60% chance of rate cuts in September. Investors will closely monitor Powell’s remarks for confirmation of the Fed’s next move as markets weigh slowing growth against persistent inflation risks.