The Federal Reserve kept interest rates unchanged at 3.75%-4.00% on Wednesday as persistent inflation complicated its policy decisions. Officials said they need more economic data before adjusting borrowing costs.
The decision passed 10-2, with Lisa Cook and Beth Hammack dissenting in favor of a quarter-point increase. The Fed upgraded its assessment of economic activity to “strong” from “solid,” citing continued economic resilience.
Fed Maintains Cautious Policy Stance
The Fed said it needs more data to determine how to bring inflation back to its 2% target. Oil prices above $100 a barrel have added to concerns about rising costs.
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Markets have reduced expectations for an immediate rate change, although investors still anticipate increases beginning in December. Kelly Brown, CEO of Ampersand, said, “A hold isn’t relief. It’s the Fed telling Main Street to wait.”
Crypto Prices Show Mixed Reaction
Cryptocurrency prices moved in different directions after the decision. Bitcoin rose 0.64% and Ethereum gained 0.91%, despite longer-period losses of 3.81% and 5.37%, respectively.
XRP fell 4.11%, while Solana dropped 5.37%. BNB edged up 0.39%, while Tether and USDC remained stable.
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