While the Fed held its policy rate steady at 3,75%–4,00%, Bitcoin rose to $81,000 after the decision, and markets remained focused on a rate hike priced in for December.
The U.S. Federal Reserve left rates unchanged, in line with expectations, at its meeting on Wednesday, October 28. The decision statement, as reported by CoinDesk, emphasized that economic activity remained strong, while inflation continued to run high.
The Fed said uncertainty remained elevated, partly due to geopolitical developments, while domestic spending was resilient and productivity growth and capital investment were strong. It noted that employment gains had kept pace with labor force growth, while the unemployment rate had changed little.
Decision was not unanimous
The decision to hold rates steady was approved by a 10–2 vote. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack voted against it.
Despite high inflation readings in September, officials’ statements throughout October had signaled that they were open to a slower pace of monetary tightening. Following those comments, markets removed expectations of a hike at the October meeting.
By contrast, according to the market pricing cited in the report, a rate hike at the December meeting was fully priced in. This expectation reflects investors’ current outlook, not a decision by the Fed on its next meeting.
Initial moves in Bitcoin and the bond market
In initial trading after the decision, Bitcoin rose to $81,000. At the same time, the U.S. 10-year Treasury yield rose 4 basis points to 5,025%, while the 2-year Treasury yield climbed 4,6 basis points to 4,78%. U.S. stocks also held on to their modest intraday gains.
These levels reflect the initial market picture reported after the decision. Fed Chair Kevin Warsh’s post-meeting press conference is scheduled to begin at 21.30 TSİ.
Not investment advice.