File photo-Fed Chair Powell

The US Federal Reserve on Wednesday left interest rates unchanged, holding its benchmark lending rate at 3.5% to 3.75%.The decision was not unanimous. Governors Christopher Waller and Stephen Miran dissented, favouring a quarter-point rate cut. The decision comes after the central bank cut rates at three consecutive meetings late last year. Fed officials have said they want time to see how those cuts affect the economy before considering any further reduction, signalling that rates could stay on hold for the next few months.The pause was widely expected. While concerns over a slowing labour market had earlier pushed the Fed to cut rates, recent economic data has been more mixed. Growth has been stronger than expected, unemployment remains low, and inflation continues to stay above the central bank’s comfort level.The Fed’s cautious approach comes amid renewed political pressure. President Donald Trump has repeatedly argued that interest rates should be cut more aggressively. Since returning to office last year, he has stepped up criticism of the central bank, drawing warnings from officials about the need to protect its independence.Trump has called for the removal of Fed Governor Lisa Cook, citing allegations of mortgage fraud, and his administration has launched an inquiry into Federal Reserve Chair Jerome Powell over renovations at the central bank’s headquarters.Earlier this month, Powell responded strongly to the criticism, warning against threats of criminal prosecution and raising concerns about whether monetary policy decisions could be influenced by political pressure.