Federal Reserve holds rates steady, signals cautious path ahead

WASHINGTON — The Federal Reserve opted to hold its benchmark interest rate steady at its latest meeting, citing a resilient labor market alongside stubborn pockets of inflation that have yet to fully ease.

Chair officials signaled that future decisions would remain data-dependent, pushing back against market expectations of imminent rate cuts.

Bond markets reacted with modest volatility as investors recalibrated their expectations for the remainder of the year.