The Federal Reserve on Wednesday announced that it will leave its benchmark interest rate unchanged, as policymakers decided to hold rates steady amid elevated economic uncertainty as they continue to monitor inflationary pressures and labor market data.

The central bank’s decision leaves the benchmark federal funds rate at a range of 4.25% to 4.5%, where it has remained following all five of the Fed’s policy meetings this year. The central bank cut rates at its final three meetings in 2024, including a 50-basis-point cut in September and a pair of 25-basis-point reductions in November and December.

The Federal Open Market Committee (FOMC), which guides the central bank’s monetary policy moves, noted in its announcement that “recent indicators suggest that the growth of economic activity moderated in the first half of the year. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.”

The FOMC voted 10-2 to leave rates unchanged, with Fed Governors Michelle Bowman and Christopher Waller dissenting from the decision on the grounds that they would have cut the federal funds rate by 25-basis-points.

This is a developing story. Please check back for updates.