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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Leaders of countries from the Commonwealth of Independent States (CIS) have agreed to hold coordinated population censuses around 2030. They took the decision at the CIS Council of Heads of State meeting in Awaza, Turkmenistan on Friday, media reported.
The explosion at King Khalid International Airport in Riyadh on Saturday afternoon killed at least 12 people and injured a further 309, according to Saudi Arabia’s Civil Aviation Authority. The airport remains closed until further notice.
Britain and Israel have reached a temporary compromise over the future of the British Consulate General in East Jerusalem, easing a diplomatic dispute that had threatened to further strain relations between the two countries.
South African judge Navanethem “Navi” Pillay won the Nobel Peace Prize on Friday “for her efforts to promote peace and international law,” the Norwegian Nobel Committee said.
The U.S. has imposed sanctions on the International Criminal Court (ICC) on Friday (9 October) escalating tensions with European allies and potentially targeting companies that provide services to the tribunal. The move came hours after former ICC judge Navi Pillay won the Nobel Peace Prize.
Indian police detained more than 2,000 protesters in Delhi on Saturday as authorities blocked a planned demonstration calling for the resignation of Chief Election Commissioner Gyanesh Kumar over disputed changes to voter lists.
At least 12 people, including three children, have been killed in a Russian attack on the Ukrainian city of Zaporizhzhia, a day after U.S. President Donald Trump announced a deal to ease sanctions on Russian diesel.
Ukrainian President Volodymyr Zelenskyy has criticised U.S. President Donald Trump’s decision to ease sanctions on Russian diesel exports, questioning why Moscow was granted an economic benefit without an apparent concession towards ending the war in Ukraine.
Russian President Vladimir Putin expressed surprise after Donald Trump mediated the Armenia-Azerbaijan peace agreement in 2025, the U.S. President said at a rally in New York state on Friday.
The United Nations has condemned a sharp rise in attacks on civilians in Ukraine, reporting that more than 100 people were killed and at least 429 injured in a single week as Russian strikes hit residential areas, passenger buses and critical infrastructure.
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