The US Federal Reserve held its benchmark interest rate steady at 4.25% to 4.50% for the fifth consecutive meeting, with Chair Jerome Powell indicating that a rate cut in September is uncertain. Powell emphasized the Fed's commitment to controlling inflation, which remains about half a percentage point above its 2% target, and cautioned that upcoming data will be key to determining future moves.

Despite economic growth and a stable 4% unemployment rate, inflation remains above the Fed’s 2% target and is projected to rise to about 3% by year-end. Powell said the Fed needs more data before loosening its modestly restrictive policy stance.

Following Powell’s comments, the probability of a September rate cut dropped below 50%. The policy decision passed by a 9-2 vote, with two Trump-appointed governors dissenting in favor of a cut. The Fed has now held rates steady for five consecutive meetings, maintaining a cautious wait-and-see approach.