Fed Holds Rates Steady, But Rate Hike Odds Rise to 62%

The Federal Reserve left interest rates unchanged at 3.50%-3.75% on July 29, but a split vote among policymakers has raised concerns about future rate hikes.

A 9-3 vote kept the federal funds rate steady, with three officials - Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan - voting in favor of a 25-basis-point increase. This marked the first time since September 2016 that three policymakers have dissented in the same direction.

The split vote has increased the likelihood of a rate hike in September, with the CME FedWatch Tool showing a 62% chance. As a result, Bitcoin and other risk assets remain under pressure.