The Federal Reserve left its benchmark federal-funds rate unchanged at 4.25%–4.5% on Wednesday, extending a pause that has been in place since the start of the year. It marks the fifth straight policy meeting in which officials opted against further easing, even as the central bank confronts persistent uncertainty over the economic impact of President Donald Trump’s sweeping tariffs. The decision was approved on a 9–2 vote, with Governors Michelle Bowman and Christopher Waller favoring a quarter-point cut. It is the first time since 1993 that two members of the Fed’s Washington-based board have dissented on a rate decision, underscoring divisions within the institution over how quickly to loosen monetary policy. Chair Jerome Powell said policy remains “modestly restrictive” and stressed that “no decisions” have been made ahead of the next meeting on Sept. 16-17. The policy statement noted that economic growth "moderated in the first half of the year" despite a 3% rebound in second-quarter GDP, while inflation stays "somewhat elevated." Trump has stepped up public criticism of the Fed, calling for rates three percentage points lower to spur borrowing and cut federal debt costs. Powell reiterated the central bank’s independence, arguing that moving too soon risks reigniting inflation, whereas waiting too long could unnecessarily damage the labor market. Traders trimmed the odds of a September cut after the press conference. Policymakers said they will continue to monitor incoming data on employment, inflation and trade developments. While higher import duties are beginning to filter into consumer prices, officials remain divided over whether the effect will be transitory or persistent. For now, the Fed signaled a wait-and-see stance as it weighs conflicting pressures from a slowing economy and political demands for cheaper credit.