The Federal Reserve announced that it would maintain the target range of the federal funds rate at 5.25% to 5.5%, in line with market expectations. This is the eighth consecutive time that the Fed has maintained this interest rate range unchanged since September 2023.

China News Service reported that the Federal Reserve issued a statement on Tuesday (July 31) after a two-day monetary policy meeting. The statement made some adjustments to the previous wording, changing inflation to "slightly high" from "high", changing "paying attention to inflation risks" to "paying attention to the two-way risks of the dual mission", and changing "the risks faced are moving towards a better balance" to "the risks faced continue to move towards a better balance".

The Fed reiterated that it would not be appropriate to cut interest rates until it is more confident about inflation. The statement said that recent indicators show that US economic activity continues to expand steadily, job growth slows, and the unemployment rate rises but remains low. Inflation has slowed over the past year, but it is still slightly high. In recent months, the Fed has made some progress in achieving its inflation target. The Fed strives to achieve full employment and 2% inflation targets, and the risks currently faced continue to move towards a better balance. Given the uncertainty in the economic outlook, the Fed will pay attention to the two-way risks of its dual mission.