• Repoter 11
• 31 Jul, 2025

The decision, which was widely expected, left the Federal Reserve's key lending rate between 4.25% and 4.5%, where it has stood since December.

But in an unusual dissent, two members of the board voted against the plan, saying they preferred to cut, which is a sign that support for lower rates may be broadening.

The vote came as new economic data continued to fuel debate over what effects Trump's tariffs will have on the world's largest economy.The latest figures showed the US economy grew at an annual rate of 3% over the April-June period, after shrinking in the first three months of the year, the Commerce Department saidBut the bigger-than-expected rebound was driven primarily by a sharp drop in imports as Trump's tariffs kicked in."Forget about the headline number," Jim Thorne, chief market strategist for Wellington-Altus Private Wealth told the BBC's Opening Bell. "The underlying data is suggesting an economy that is losing momentum."The Fed typically lowers interest rates when the economy is struggling and raises them if the pace of price rises starts increasing too quickly.Policymakers at the Fed have long indicated that they expected to lower borrowing costs at some point this year, following in the footsteps of other central banks, including in the UK, which have cut interest rates.But they have held off far longer than once anticipated, worried about how tariffs and other new policies, including tax cuts, will affect the economy.Inflation, the pace of price increases, also remains above the Fed's 2% target, ticking up to 2.7% in June.