Fed Keeps Benchmark Rate Steady at 4.25%-4.5% with Two Dissenters

The U.S. Federal Reserve kept its benchmark fed funds rate steady at 4.25%-4.5%. Two governors, Michelle Bowman and Chris Waller, dissented, advocating for a 25 basis points cut, marking the first dissent by two members since December 1993.

Economic growth moderated in the first half of the year.
Unemployment remains low; labor market conditions are solid.
Inflation is still elevated.

After the announcement, Bitcoin dipped nearly 0.5% to $117,400, while the S&P 500 and Nasdaq indexes saw slight declines. A trader known as "Spice" placed a $1.3 million bet on the Fed maintaining rates, which was reduced to $724 million before the decision.

Market focus shifts to Fed Chair Jerome Powell's remarks for insights into potential rate cuts in September. The CME FedWatch tool indicated a nearly 60% probability of lower rates next month.