The Federal Reserve held its benchmark federal funds rate steady at 3.50%-3.75% following the July 28-29 FOMC meeting in a 9-3 vote, reflecting a divided committee weighing elevated inflation against softening labor market data. July CPI rose 3.4% year-over-year with core at 2.5%, while recent nonfarm payrolls showed unexpected weakness, creating mixed signals that have shifted market-implied odds toward a potential hike by year-end rather than further easing. Traders now focus on the September 15-16 meeting and its updated dot plot for clearer policy signals, alongside upcoming inflation releases and employment reports that could reinforce or ease pressure on the current pause.