Fed Keeps Benchmark Rate Steady at 4.25%-4.50%
The U.S. Federal Reserve has maintained its benchmark fed funds rate at 4.25%-4.50%, marking the first pause since policy easing began in September. Key points include:
- Unemployment remains low; inflation is still elevated.
- The Fed's language was hawkish, omitting previous mentions of progress on reaching a 2% inflation target.
- Bitcoin's price fell to $101,800 immediately following the announcement.
- U.S. stock indices also declined, with the Nasdaq down 1.1% and the S&P 500 down 0.9%.
- 10-year Treasury yield increased by 5 basis points to 4.59%.
- Since September, the fed funds rate has decreased by 100 basis points, contrasting with the rising 10-year Treasury yield from 3.6% to 4.6%.
- Fed Chair Jerome Powell indicated that further rate cuts are currently on hold.
- Post-conference, bitcoin’s price rose above $103,000 after Powell's remarks.