The Federal Reserve held its key interest rate steady at 4.5%, defying pressure from the Trump administration to lower it. Two Trump-appointed officials dissented, highlighting economic uncertainty and political pressure. While economic growth moderated, inflation remained elevated, prompting concerns about the impact of tariffs. The possibility of a rate cut in September remains, contingent on upcoming economic data, particularly regarding inflation and labor market strength. Despite a stronger-than-expected second-quarter GDP report, underlying inflation data showed a rise, fueling debate on the Fed's next move.

Prepared by Christopher Adams and reviewed by editorial team.