The Federal Reserve held interest rates steady at 3.5%–3.75% on Wednesday, meeting market expectations but leaving crypto markets to digest a muted response. Bitcoin dipped around 1% to $63,890, while Ethereum fell by about 1% to just above $1,900.
It's the fifth consecutive hold since the last cut in December 2025. Chair Kevin Warsh has pledged to share less "forward guidance," meaning fewer signals about future moves. Wednesday's decision came without a Summary of Economic Projections—the next dot plot is scheduled for September.
The committee noted the economy is "expanding at a solid pace," but inflation remains above its 2% target, partly due to rising energy prices from Middle East tensions. Oil has been trading above $100 a barrel, keeping price pressure alive. A September hike is no longer off the table.
Three regional Fed presidents voted for an immediate 25-basis-point hike—the most hawkish bloc of dissents under Warsh. Additionally, geopolitical shocks weighed on markets: oil climbed nearly $4 to $83 after joint U.S.-Saudi retaliatory strikes on Iranian-backed forces in Iraq killed at least 20 people.
The next FOMC decision is September 16, 2026, with updated projections and a new dot plot.
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