Fed Holds Rates Steady Amid Internal Divisions; Markets Await Tech Earnings

Federal Reserve Chair Jerome Powell maintained a firm stance on interest rates this week, resisting pressure from dissenting governors Christopher Waller and Michelle Bowman. The rare near-dissent marks growing tensions within the central bank as inflation remains stubbornly above target. Powell emphasized a patient approach, citing ongoing tariff impacts and the need for more data—a position supported by most policymakers.

Equities edged higher ahead of the Fed decision, with the S&P 500 and Nasdaq recovering from Tuesday's minor retreat. Investor attention split between monetary policy and Big Tech earnings, particularly Microsoft and Meta's AI-driven results. Boeing outperformed on strong earnings, but market focus remains fixated on September as the likely timeline for the first rate cut should economic indicators soften.