The Federal Reserve held interest rates steady Wednesday, a widely expected pause as markets turned attention to Chair Jerome Powell’s potential final FOMC press conference.
The Federal Open Market Committee maintained the federal funds rate target range at 3.5% to 3.75%. Recent indicators suggest economic activity has continued to expand at a solid pace, though job gains have been low and inflation remains elevated, partly due to global energy prices.
Bitcoin traded near $76,000, flat on the day, while major US stock indexes were slightly lower, reflecting a market that had already priced in no rate change.
The Fed statement highlighted geopolitical risk, noting that developments in the Middle East contribute to significant uncertainty regarding the economic outlook. Policymakers stated they remain attentive to risks affecting both maximum employment and the 2% inflation target.
Powell’s remarks are now the central focus for traders seeking signals on inflation, unemployment, energy-driven price pressures, and the Fed’s future policy steps. His comments carry added weight as this could be his last FOMC meeting as chair, with attention also on his discussion of leadership transition and his outlook for the central bank.
The leadership transition is gaining focus after the Senate Banking Committee advanced Kevin Warsh’s nomination to replace Powell as Fed chair. Warsh's nomination moves toward a full Senate vote, adding complexity for markets already assessing the Fed's rate path, inflation risks, and signs of a cooling labor market.