* The Federal Open Market Committee voted to hold the benchmark funds rate steady at 3.5%-3.75%.

* However, there was dissent, with the vote split 8-4.

* Governor Stephen Miran wanted a quarter percentage point cut. Beth Hammack of Cleveland, Neel Kashkari of Minneapolis and Lorie Logan of Dallas did not support an easing bias in the Fed's statement.

* Financial markets are not fully pricing in a rate cut until next year.

* Jerome Powell set to stay on the Fed's board of governors.

Susannah Streeter, Chief Investment Strategist, Wealth Club

"Energy markets are back at panic stations, with Brent crude oil surging higher. But for now, Fed policymakers are keeping a cool head and have pressed the pause button while they assess the repercussions.

While the energy crunch is already hurting many millions of households and pushing up costs for companies, it's still unclear to what extent the shock will become embedded in the economy. The latest US core inflation reading is hovering at around 2.6% year-on-year, still close to target but not yet fully anchored to a downward trend. There is growing concern about the potential for companies to pass on higher costs through higher prices.

There was unusual dissent around the table, with three policymakers not keen on including a bias towards further easing of monetary policy at this time, given the evolving outlook. For now, a wait-and-see mood is still percolating, especially given that it is a transition period for the Fed. Markets are still pricing in an interest rate cut, but on a more distant horizon, with a reduction not fully priced in until next year.

There had been worries that incoming chair Kevin Warsh might not be as firm a bulwark against rising inflation compared to Jerome Powell. However, a Fed led by Warsh is more likely to herald a shift in tone rather than a sudden policy jolt, especially given that Jerome Powel has signalled he's intending to stay on the Fed's board of governors after his term ends this month. Decisions will continue to be shaped by the broader committee, and Powell will remain a force of influence and institutional stability, so change is expected to be gradual. This may provoke the ire of the President, as it means a seat on the Fed won't become vacant, but Jerome Powell is clearly undaunted.

Major indices drifted further into the red, as higher borrowing costs look set to linger. With Brent crude nudging $120 a barrel earlier, as President Trump upped the ante with threats towards Iran, it is also unsettling investors.

Investors may be wise to brace for volatility ahead, as uncertainty is set to keep swirling about the future direction of policy at the Federal Reserve. This is a well-worn pattern, seen in previous transitions, and is likely to be heightened due to the unpredictability of the Middle East crisis. However, a raft of bumper big tech results later could yet see sentiment swing to the upside."

Ends

For further information contact:

Jo Thorne: jo.thorne@wealthclub.co.uk

Wealth Club

Wealth Club was founded by former Hargreaves Lansdown director Alex Davies in 2016. At Hargreaves Lansdown Alex and his team were responsible for launching its SIPP business and growing it to be the UK's largest SIPP provider. Alex was a director of and shareholder in Hargreaves Lansdown which floated on the stock exchange in 2007. This meant that age 38 he was in the fortunate position to be able to retire. With time and a big tax bill on his hands Alex began investing in start-ups using the EIS and VCT schemes. Whilst there were some great opportunities out there, there was very little good quality information to help people decide where to invest and it was difficult to know whom to trust in a very "word of mouth" type of industry. In most cases it was also very difficult to apply for and monitor these investments online.

With this in mind Alex set up Wealth Club. Today Wealth Club is the largest non-advisory investment service exclusively for high net worth and sophisticated investors. It is the biggest broker of Venture Capital Trusts and EIS funds as well as recently launching a discretionary management service and opening up Private Markets funds to individual investors.

Today Wealth Club has 70,000 members who receive regular information on investments from them. Of those 14,000 have become clients and invested more than £1.8 billion through the platform. Its clients typically have £1 to £5 million of wealth, although 22% have more than £5 million and 6% more than £10 million. The business is completely online, although clients can speak to an expert on the phone who will answer their call within a few rings.

Wealth Club has received no external funding and became profitable within a year and a half of operating. Since then, it has increased its profit every year. In its most recent financial year ending 30thJune 2025, it made a pre-tax profit of £3.6 million. 59% of its income is recurring. The company is based in one office in Clifton in Bristol and has 43 employees.