The Federal Reserve left its benchmark federal-funds rate unchanged at 4.25%–4.50% on Wednesday, holding steady for a fifth straight meeting. The decision was approved 9–2, with Governors Christopher Waller and Michelle Bowman voting for a quarter-percentage-point cut—the first time since 1993 that more than one Board member has dissented at a single policy meeting. In its accompanying statement, the Federal Open Market Committee said “recent indicators suggest growth of economic activity moderated in the first half of 2025” and noted that inflation remains “somewhat elevated.” The language removed June’s reference to diminishing uncertainty and emphasized that the outlook remains “still elevated,” signalling that officials want more evidence before easing what Chair Jerome Powell described as a “modestly restrictive” stance. The outcome defied heightened pressure from President Donald Trump, who earlier in the day told reporters he “hears” the Fed will cut rates in September. Powell, speaking after the decision, countered that policymakers have “made no decisions about September” and will rely on upcoming data on inflation, employment and the impact of the administration’s tariffs before considering any move. Traders trimmed the implied probability of a September rate cut to below 50% as Treasury yields firmed and the S&P 500 slipped. With growth slowing to roughly a 1.25% pace for the first half and June consumer prices up 2.7% from a year earlier, investors will watch forthcoming inflation and jobs reports to gauge whether the rare split on the Board broadens into an actual shift toward lower borrowing costs later this year.