The U.S. Federal Reserve held interest rates steady on Wednesday, keeping the target range for the federal funds rate between 3.5% and 3.75%, with policymakers pointing to solid economic growth, stabilizing working conditions and inflation that remains somewhat elevated.
Bitcoin showed little reaction to the decision, remaining capped near $90,000. The largest crypto asset by market value has been trading between $80,000 and $95,000 since mid-November, reflecting investors’ hesitation over changing monetary policy expectations.
The broader crypto market has remained subdued since late last year, as investors continue to digest heightened geopolitical risks from U.S. tensions with Venezuela and Iran, as well as recurring trade and tariff uncertainty.
Capital shifted to other assets, with gold and silver hitting near daily highs, with gold surpassing $5,300 and silver hitting $115 on Monday. Stocks also rose, with the S&P 500 hitting a new all-time high above 7,000, highlighting a shift toward traditional safe havens and large-cap stocks over crypto.
In his statement,The Federal Open Market Committee said available indicators suggest economic activity has been growing at a solid pace. Job creation remained weak, while the unemployment rate showed signs of stabilization. Inflation remains somewhat high.
Policymakers reiterated their commitment to achieving maximum employment and bringing inflation back to its long-term target of 2%, while acknowledging that uncertainty around the economic outlook remains high. The commission said it remained alert to risks on both sides of its dual mandate.
In support of its goals, the Fed said it will carefully evaluate upcoming data, changing outlooks and the balance of risks when considering the timing and magnitude of future policy adjustments. Officials said they remained ready to adjust the stance of monetary policy if risks emerged that could hamper progress toward their goals.
The decision was supported by Chairman Jerome Powell and a majority of voting members, including John Williams, Michael Barr, Michelle Bowman, Lisa Cook, Beth Hammack, Philip Jefferson, Neel Kashkari, Lorie Logan and Anna Paulson. Stephen Miran and Christopher Waller disagreed, favoring a quarter-point rate cut at that meeting.
