US Federal Reserve Keeps Interest Rates Unchanged Amid Persistent Inflation

The US Federal Reserve kept interest rates unchanged for a fifth consecutive meeting on July 29, despite persistent inflation and pressure from President Donald Trump for lower borrowing costs.

The rate-setting committee voted 9-3 to keep the federal funds rate at around 3.6 per cent, with three officials dissenting in favor of a rate increase due to ongoing inflation concerns.

Fed Chair Kevin Warsh said bringing inflation back to the 2 per cent target would take time amid economic uncertainty, and that policymakers are providing fewer signals about future interest rate moves, leading to recent increases in Treasury yields.