As expected by markets, the U.S. Federal Reserve held its benchmark fed funds rate steady at 3.50%-3.75% on Wednesday. This marks the fourth consecutive meeting without a change as officials weigh persistent inflation risks against signs of slowing economic growth.
"In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks," the Fed stated.
There were four dissents to the decision: one dovish and three hawkish. Fed Governor Stephen Mirran preferred a 25-basis-point cut, while Beth Hammack, Neel Kashkari, and Lorie Logan wanted to hold rates steady but remove any easing bias.
Bitcoin was trading just below $76,000, down about 0.5% over the past 24 hours. U.S. stocks posted modest declines, with the Nasdaq down 0.35%.
Today's meeting is likely Jerome Powell's last as chairman; his term ends May 15. His replacement, Kevin Warsh, cleared a Senate Banking Committee vote on Wednesday, paving the way for his takeover.
The three hawkish dissents suggest Warsh will face a difficult task pushing through rate cuts, even if that is his preferred direction. Attention now shifts to Powell's post-meeting press conference for clues on monetary policy's path forward.