- The FOMC voted 9-3 to keep the federal funds rate at 3.5% to 3.75% on July 29.
- Three regional presidents dissented in favor of a 25-basis-point increase amid elevated inflation.
- Bitcoin traded around $64,250 after the decision, up about 1% on the day, with limited immediate volatility.
- Analysts described the outcome as a hawkish hold, with attention shifting to the September meeting.
The Federal Reserve held its benchmark interest rate steady on Wednesday in a closely watched decision that drew three dissenting votes for a hike, leaving bitcoin little changed near the $64,000 level.
In its official statement, the Federal Open Market Committee voted 9-3 to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent. Voting against the action were Cleveland Fed President Beth M. Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie K. Logan, who preferred to raise the range by 1/4 percentage point.
The Committee said economic activity is expanding at a solid pace despite elevated uncertainty tied in part to the conflict in the Middle East. Productivity growth and capital investment remain strong, while job gains have kept pace with the workforce and the unemployment rate has changed little. Inflation remains elevated relative to the 2 percent goal, partly reflecting supply shocks in energy and other sectors.
Crypto markets showed a muted response in the hour after the announcement, according to The Block. Bitcoin traded around $64,250, up roughly 1% on the day, while ether rose about 1% to $1,915 and XRP gained nearly 3% to $1.08.
Other reports noted a brief post-decision bounce. Bitcoin moved from about $63,700 toward an intraday high near $64,700 before settling near $64,325, up 1.1% over 24 hours, as detailed by BeInCrypto.
Analysts broadly characterized the outcome as a hawkish hold. Andrei Grachev, managing partner at DWF Labs, said the decision signals the Fed will not tolerate inflation above target even at the cost of a growth scare, calling it the least favorable outcome for digital assets this cycle due to tighter policy and reduced liquidity. Stephen Coltman, head of macro at 21Shares, described it as a sigh of relief for investors but cautioned that it sets up a potentially difficult September meeting if inflation stays elevated, according to CoinDesk.
Fed funds futures later assigned a high probability of a September rate increase. Markets now turn to upcoming inflation data and Chair Kevin Warsh’s guidance for further clues on the policy path.
