Fed Keeps Rates Unchanged; Bitcoin and Ethereum Slide 1%
AI Market Summary
The Fed held rates steady at 3.5%–3.75% for a fifth straight meeting, but noted inflation remains above target amid energy-driven pressures tied to Middle East tensions. Three dissenters favored an immediate hike, adding hawkish signal risk ahead of September's dot plot and projections. Crypto reacted with modest risk-off moves, with BTC and ETH down ~1% after the decision, reflecting sensitivity to shifting rate expectations.
Impact level
● High
Affected assets
BTC/USDT-0.37%
AI Insight · BTC/USDTAI Insight
● Neutral
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Odaily Planet Daily reports: The Federal Reserve on Wednesday left its benchmark interest rate unchanged at 3.5% to 3.75%, matching broad market expectations. It was the fifth straight meeting without a rate move since the committee's 25-basis-point cut in December 2025.
Cryptocurrencies weakened after the decision. Bitcoin fell about 1% to $63,890, while Ethereum slipped roughly 1% and stayed above $1,900.
The Fed released the decision without an economic projections summary or dot plot. The next dot plot is due in September.
Policymakers said the U.S. economy continues to expand at a solid pace, while inflation remains above the 2% goal. The committee cited higher energy prices, linked in part to Middle East tensions, as a factor.
Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan dissented, preferring an immediate 25-basis-point rate hike.
The next FOMC decision is scheduled for Sept. 16, 2026, and will include updated economic projections and a new dot plot.
