Dow Jones edges higher, Fed maintains rates in a split vote

The markets react to the decision of the interest rate of the Fed, in the midst of continuous concerns concerning commercial policy.

The main American stock market indices increased after the Fed decision provided for interest rates. Wednesday, July 30, the FOMC decided to maintain the rates of 4.25% to 4.50%. Low unemployment and still somewhat high inflation influenced the decision to postpone a drop in rates.

However, the vote was divided, with the person appointed by Trump Michelle W. Bowman and Christopher J. Waller for a drop in rate. After the decision, Dow Jones increased by 0.03%, the S&P 500 increased by 0.22%, while the Nasdaq, heavy in technology, increased by 0.46%.

The Fed’s decision comes despite Donald Trump’s continuous pressure on the president of the Fed, Jerome Powell, to reduce interest rates. In a final article on his social media platform Truth Social, Trump highlighted GDP growth at 3%, arguing that it is now time to reduce interest rates.

“Too late,” must now reduce the rate, “said Trump in a social article of truth.” No inflation! Let people buy and refinance their homes, “he added.

Trump threatens new prices on India

In addition to pressures on the Fed, Trump also increases his threats against American business partners. On Wednesday, the American president threatened that the goods from India would be subject to a price of 25%, after the deadline on Friday August 1. He also underlined the purchase of Russian military equipment by India, for which the country will pay an additional penalty.

“Everything that is not good! India will therefore pay a price of 25%, plus a penalty for the above, from August first,” said Trump.

The markets are now gaining immunity from Trump’s aggressive commercial rhetoric. After winning a major victory in commercial negotiations with the EU, the emphasis is now put on American discussions with China.