The Federal Reserve held its benchmark interest rate steady after its latest FOMC meeting, keeping the target range at 3.75% to 4%, the central bank said in a press release. The decision was approved by a 10-2 vote, with Lisa Cook and Beth Hammack dissenting in favor of a rate hike.
The move was in line with expectations despite inflation concerns among Fed officials. The decision follows the Fed’s September rate hike, the first increase since 2023, which was supported unanimously by Committee members.
Inflation Remains Elevated
In its statement, the Committee said inflation remains elevated. “The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee’s 2 percent goal. The Committee will deliver price stability,” the release said.
Market participants will now look to Fed Chair Kevin Warsh’s FOMC press conference for insight into whether the Committee will hike rates again at the December meeting or hold rates steady.
Bitcoin Retreats After Decision
The Bitcoin price fell following the Fed’s announcement, trading at around $80,600 and up less than 1% on the day, according to TradingView data. The leading cryptocurrency continues to trade in a tight range amid uncertainty over the U.S.-Iran war and the upcoming midterm elections, which could further shape U.S. crypto policy. BTC is down more than 4% over the last month and nearly 3% over the last week.
Ahead of the December FOMC meeting, crypto traders are betting that the Fed will hike rates. Data from Polymarket shows an 82% chance of a 25-basis-point rate increase, with only a 16% chance that the Fed will leave rates unchanged.
