Fed Holds Rates Steady Amid Inflation-Job Market Crosscurrents
The Federal Reserve maintained its benchmark interest rate at 3.5%-3.75%, pausing after three consecutive cuts. The decision reflects mounting tension between persistent inflation and a cooling labor market—a dynamic with implications for risk assets.
Dissenting votes from Governors Miran and Waller signaled lingering dovish impulses, while the committee's statement emphasized data-dependent flexibility. 'We will carefully assess incoming data, the evolving outlook, and the balance of risks,' the FOMC said—a nod to the precarious equilibrium between price stability and employment.
For crypto markets, the hold suggests diminished tailwinds from monetary easing but avoids the headwinds of accelerated tightening. Bitcoin and ethereum showed muted reaction, trading within established ranges as traders weighed the Fed's neutral stance against macro uncertainties.
