The Fed Keeps Rates at 3.50-3.75%, Nasdaq Drops 10% in July

The U.S. Federal Reserve announces that it will maintain its benchmark interest rates in the range of 3.50 to 3.75% for the fifth consecutive time. This decision comes amid persistent inflation linked to geopolitical tensions in the Middle East. Kevin Warsh, head of the Fed, emphasizes the strength of the economy while maintaining the inflation target of 2%. Markets react negatively, with the S&P 500 down 1.5% and the Nasdaq-100 falling 2%, which has seen a decline of over 10% in July, nearing the largest monthly drops of September and October 2008. The lack of clear prospects for a future rate cut limits investors' appetite for risky assets, despite controlled inflation.