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THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
City skyline at sunset in Metro Manila
Economic Updates
Quarterly Economic Growth Release: Stronger case for a BSP cut in August
August 7, 2025 DOWNLOAD
economy-ss-3
Economic Updates
Inflation Update: BSP’s low-inflation safety net
August 5, 2025 DOWNLOAD
bsp-banner
Economic Updates
Monthly Economic Update: Two more BSP cuts 
July 31, 2025 DOWNLOAD
View all Reports
Economy 2 MIN READ

Fed Update: Seeing room for rate cuts 

The Fed is still on wait-and-see mode as it awaits more data

July 31, 2025By Metrobank Research   
US Fed Chairman Jerome Powell

(Editor’s Note: This article was updated to reflect the correct date of the FOMC meeting.)

As widely anticipated by financial markets, the US Federal Reserve (the Fed) kept the Federal Funds Target Rate (FFR) unchanged at 4.25%-4.50% during the Federal Open Market Committee (FOMC) meeting from July 29 to 30, 2025, with a 9-2 vote.

Key points

  • The FOMC remains on a wait-and-see mode as it continues to evaluate ongoing risks related to inflation, labor market, and the broader economy.
  • The labor market remains “in balance” but inflation remains elevated. The US economy also signals some weakness in growth.
  • US Fed Chair Jerome Powell did not discount the possibility of a policy rate reduction in the next meeting as the committee is yet to assess upcoming economic data.

What now?

  • We maintain our forecast that the US Fed will reduce its policy rate by a cumulative 50 bps in 2025, followed by another cumulative 50 bps in 2026. This will bring the target FFR range down to 3.75%-4.00% by end-2025 and to 3.25%-3.50% by end-2026.

(Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)    

ECONOMIC UPDATES   

Policy rate views: US Fed still on wait-and-see

Majority of the governors vote to keep rates steady

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