The Federal Reserve maintained its benchmark interest rate steady on Wednesday, keeping it within the target range of 3.50% to 3.75%. The decision comes as rising energy costs and economic uncertainty, particularly due to conflicts in the Middle East, complicate the Fed's efforts to balance inflation and a cooling job market.
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The Federal Open Market Committee (FOMC) noted that 'inflation remains somewhat elevated' and job gains have been low, with the unemployment rate ticking up to 4.4% in February. Despite this, the Fed emphasized a data-dependent approach to future interest rate decisions, maintaining a 'wait-and-see' stance.
The U.S.-Israel conflict with Iran has added to the economic uncertainty, causing energy prices to surge. The Fed stated that the implications of these developments for the U.S. economy are uncertain.