Fed keeps rates steady amid rising internal pressures

The Federal Reserve decided to hold interest rates steady at 3.5 to 3.75 percent, citing concerns over ongoing inflation pressures and global supply shocks, including geopolitical conflicts and rising demand for AI-related products. While most policymakers favor patience, some anticipate a potential rate hike in September if inflation remains elevated. The decision reflects the challenge of balancing inflation control with economic stability amid uncertain economic and geopolitical factors.

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