Fed Holds Rates Steady Amid Inflation Concerns

The Federal Reserve decided to hold interest rates steady at 3.5%, 3.75%, meeting near-universal market expectations. Bitcoin and Ethereum both dipped around 1% shortly after the announcement, trading at $63,890 and just above $1,900 respectively.

This is the fifth consecutive rate hold since December 2022, with Jerome Powell's successor Kevin Warsh pledging to share less 'forward guidance'. The Fed's decision came without a Summary of Economic Projections or updated rate projections.

The economy is 'expanding at a solid pace', but inflation remains above its 2% target. Nearly half of FOMC members signaled support for a rate hike before year-end, with the threat of a September hike keeping price pressure alive.