The Federal Reserve keeps interest rates unchanged, with a rare disagreement in the decision.

The Federal Reserve kept interest rates unchanged on Wednesday, with a rare disagreement in the decision-making process and no clear indication of when a rate cut may be possible. This decision was opposed by two of President Trump's appointees - Waller and Bowman, both of whom believe that current monetary policy is too tight. This is the first time in over 30 years that two members have voted against a decision. The FOMC voted 9-2 to keep the benchmark overnight rate in the range of 4.25%-4.50% for the fifth consecutive meeting. The Fed stated, "The unemployment rate remains low, and the labor market is still robust. Inflation remains slightly elevated." The statement also noted that economic growth "has slowed in the first half of the year," which could strengthen the argument for a rate cut at a future meeting if this trend continues. However, the statement also emphasized that "uncertainty about economic outlook remains high," and that both inflation and employment goals face risks. This wording reflects the Fed's reluctance to cut rates hastily before the paths of inflation and employment become clearer.