Fed Holds Rates Amid FOMC Dissent, Uncertainty

The Federal Reserve decided to keep its federal funds rate at 4.25% to 4.5%, citing persistent inflation and a solid labor market, while noting that economic growth moderated in the first half of the year. Chair Jerome Powell stated that no decision has been made about a rate cut at the next meeting, emphasizing a data-dependent approach based on upcoming employment and inflation data. Although markets and some officials are hoping for a September rate cut, the Fed has not predetermined any policy moves. The central bank remains committed to its dual mandate of maximum employment and 2% inflation, and will continue to assess evolving risks. Notably, dissent within the FOMC emerged, as two members voted in favor of a rate cut, highlighting uncertainty about the economic outlook. Investor attention, including from crypto markets, remains high due to the potential impact of Fed policy changes.