by MARIA TEDESCO | The National News Desk
Thu, July 31st 2025 at 6:03 PM
WASHINGTON, DC – JULY 30: Federal Reserve Chairman Jerome Powell talks with reporters following the regular Federal Open Market Committee meetings at the Fed on July 30, 2025 in Washington, DC. Despite pressure from U.S. President Donald Trump to lower rates, U.S. central bank left interest rates unchanged at a range of 4.25 percent to 4.5 percent. (Photo by Chip Somodevilla/Getty Images)
WASHINGTON (TNND) — The Federal Reserve refused to move on interest rates again, much to President Donald Trump’s dismay.
Senior Director of Government Affairs for the National Taxpayers Union, Thomas Aiello, said he is surprised by the Fed’s decision to wait again. He thinks they should not have waited.
The Fed’s need to maintain its independence from the Trump administration is a part of the explanation for the delay, Aiello said.
Even if you were to cut interest rates by about 25 to 50 basis points, lowering the rate to about 4%, it’s not like we’re going to have the same levels of inflation that we had under the Biden administration. What I’m thinking is the Fed needed to show their independence from the administration, that they have some resolve and they weren’t going to cut rates, which is what the president wanted,” Aiello said.
Aiello said the Fed is concerned about tariffs leading to inflation. But cutting rates would benefit the consumers and the national debt, he added.
It would lower borrowing costs for, you know, building and getting a mortgage. And most importantly, for our national debt and the money we borrow, we’d be able to do that at a lower rate,” Aiello.
Although some say the Fed will cut in September, why delay another two months?
GDP surged in the second quarter, which came as a surprise to some as Trump works out his tariff deals by the Aug. 1 deadline.
When you take a closer look at GDP, however, there are still some concerns, which is another explanation as to why the Fed refused to move on interest rates, Aiello said.
You had a domestic investment decline. You had small businesses inventories, the the goods that they have in their warehouses decline. And then we also had the, the slowest growth for consumer spending since the middle of 2022,” Aiello said.
Furthermore, the Fed wanted to see another jobs or inflation report before deciding, Aiello said.
The Fed, they don’t look at things on a one-month basis,” Aiello said.
As for the jobs report releasing on Friday, Aiello expects 100,000 jobs.
“That’s been, stronger than expected over the past couple of months. I’m hopeful that we’ll see strong job growth. And with the certainty from the tax cuts plus the tariff deals, trade deals, I’m hopeful we’ll see expanded job growth through the rest of the year,” Aiello said.
