The U.S. Federal Reserve left its benchmark interest rate unchanged on Wednesday, maintaining the target range at 4.25% to 4.50%, despite mounting pressure from the Trump administration to ease borrowing costs.
The decision, announced at the conclusion of the Federal Open Market Committee’s (FOMC) two-day policy meeting, came as recent data pointed to a slowdown in economic momentum and persistent inflation.
“Although swings in net exports continue to affect the data, recent indicators suggest that growth of economic activity moderated in the first half of the year,” the Fed said in a statement.
“The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.”
The central bank acknowledged that uncertainty surrounding the economic outlook remains elevated, as it reaffirmed its commitment to achieving maximum employment and returning inflation to its 2% target.
The decision follows Commerce Department figures released earlier Wednesday showing that the U.S. economy grew at an annualized rate of 3.0% in the second quarter, following a 0.5% contraction in the first.
The Consumer Price Index (CPI) rose 2.7% year-on-year in June, marking the sharpest increase since February—widely attributed to the impact of tariffs on goods.
Among the 12 voting FOMC members, two dissented, favoring a 25-basis-point rate cut. One Fed board member abstained from voting.
The move underscores a cautious stance by the Fed amid political pressure from the White House, which has repeatedly called for lower interest rates to support growth ahead of the 2026 election.
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Iran has launched missiles and drones targeting U.S. military sites in Bahrain and Kuwait, according to Iranian state media and a U.S. official, in retaliation for recent U.S. strikes on Iran.
France has recorded 1,000 excess deaths during the severe heatwave that swept across Europe, according to the country's public health agency, which warned the final toll is likely to rise.
Lebanon says Israeli air strikes and ground operations have damaged or destroyed historic landmarks across the country's south, raising fears that parts of its cultural heritage have been lost forever.
The World Cup knockout stage is finally ready to begin after 72 group matches trimmed the expanded 48-team field down to 32.
France said on Saturday it was considering taking reciprocal measures after Burkina Faso broke off diplomatic relations.
Japan remained on high alert Saturday as Typhoon Mekkhala approached the eastern coast after Typhoon Higos weakened into a tropical depression. Authorities warned of continued heavy rain, flooding, and landslides, according to media reports.
A tanker reported being struck by a projectile in the Strait of Hormuz on Saturday, Britain's maritime security agency said, after the United States and Iran each launched strikes in the worst escalation since they signed their interim peace deal.
Germany and Poland are bracing for sweltering conditions as a deadly heatwave that has gripped Western Europe moves east, with temperatures expected to approach 40°C over the weekend.
Iran had a stoppage-time goal disallowed as they drew 1-1 with Egypt in their final Group G match at Seattle Stadium on Friday.
Russian President Vladimir Putin has said the country is going through a “difficult period”, but has learned much from it, according to state news agency TASS.
Pope Leo has expressed solidarity with people in Venezuela after twin earthquakes struck the country earlier this week, causing widespread damage and leaving communities in urgent need of assistance.
Eleven people were killed when a small plane carrying skydivers crashed near Nancy in eastern France on Sunday, local officials said.
France has recorded 1,000 excess deaths during the severe heatwave that swept across Europe, according to the country's public health agency, which warned the final toll is likely to rise.
Lionel Messi made World Cup history as Argentina finished top of Group J, while Austria and Algeria both reached the Round of 32 after a dramatic draw that ended Iran's hopes of progressing.
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