Fed Holds Rates, Signals Patience Amid Uncertainty

The U.S. Federal Reserve left its benchmark interest rate unchanged at 4.25% to 4.5% for the fifth consecutive meeting, citing persistent inflation and a strong labor market. Two Fed board members dissented, voting for a rate cut, which has fueled speculation about possible future policy easing depending on economic data. Market expectations for a September rate cut have faded, with investors now eyeing December as a more likely timeframe after recent inflation reports. Some lenders have begun lowering rates for borrowers with strong credit, although high borrowing costs continue to weigh on housing and auto markets. President Trump has criticized Fed Chair Jerome Powell for not cutting rates, but the Fed maintains its focus on inflation and employment goals over political influence. Globally, central banks such as the Reserve Bank of Fiji are also maintaining steady rates amid economic uncertainties.