The Federal Reserve left its benchmark interest rate unchanged in a range of 3.5% to 3.75% this month, holding its posture as policymakers weigh cooling inflation against lingering risks ahead of a late-July meeting.

The Federal Open Market Committee voted unanimously to keep the federal funds rate anchored at 3.5%-3.75%, extending a pause that began after last year’s easing cycle. The decision, announced in the committee’s latest statement, keeps borrowing costs where they have sat since the start of the year.

Attention now turns to the next meeting, scheduled for July 28-29, when officials will publish updated economic projections alongside their rate decision. Investors are closely watching for signals on whether a cut is imminent or whether the bar remains high.

The calm on rates belies a more uncertain backdrop. Markets are bracing for June inflation data and the start of earnings season, even as fresh geopolitical shocks — including the threat of conflict between the United States and Iran — add volatility to energy prices and risk sentiment.

Wall Street strategists describe a market caught between resilience and restraint. Strong corporate earnings have supported equities, but the prospect of sticky services inflation has led several banks to push back expectations for the first reduction.

For households and businesses, the hold means little relief on mortgages, auto loans and credit cards in the near term. The central bank has stressed it will remain data-dependent, and officials have signaled patience rather than pre-commitment as they gauge whether price pressures are durably contained.

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