The Federal Reserve said Wednesday, July 30, that it's keeping its benchmark interest rate unchanged, citing elevated uncertainty over the nation's economic outlook.
The central bank said it would maintain the federal funds rate at its current range of 4.25% to 4.5%. The last time the central bank cut interest rates was in December 2024, when it trimmed rates by 0.25 percentage points.
U.S. inflation still remains above the Fed's goal of driving it down to a 2% annual rate, with the Consumer Price Index inching higher in June to reach 2.7% on an annualized basis.
At the same time, the economy remains solid, with today's GDP report showing stronger than expected second-quarter growth of 3%, providing more ammunition to back up the Fed's argument for keeping rates steady, economists say.