Federal Reserve Holds Firm: Interest Rates Unchanged Despite Economic Uncertainty

The U.S. Federal Reserve maintained its interest rates unchanged, countering President Trump's calls for immediate rate reductions. Federal Reserve Chair Jerome Powell underscored that the central bank's priority is controlling inflation, not conforming to political pressures over lowering borrowing costs.

Powell noted the uncertainty surrounding trade policies and their impact on inflation, jobs, and growth, insisting on more data before making any decisive moves on rates at the upcoming September meeting. Investors have lowered their expectations for a September rate cut.

The decision witnessed rare dissent among Fed governors, reflecting a split in opinion. Despite maintaining current rates, Powell aimed to reassure that decisions would be timely, neither prematurely risking inflation nor waiting too long to impact employment negatively.

(With inputs from agencies.)