At the conclusion of the FOMC meeting on October 28 in Washington, the U.S. Federal Reserve (Fed) decided to keep the federal funds rate unchanged at 3.75%–4.00%. The decision was fully in line with market forecasts, but divisions emerged within the FOMC, with a 10–2 vote.
Notably, two officials dissented, favoring an additional 25-basis-point hike to curb inflation risks stemming from energy costs and the AI investment boom. The dissenting votes suggest the Fed has left the door open to tightening monetary policy again at its next meeting in December if macroeconomic data do not cool.
In response, the U.S. Dollar Index (DXY) edged down to 102.29, while spot gold prices rose slightly to around $4,043 per ounce. Traditional financial markets reacted cautiously to the decision, as the discount rate and the interest rate on excess reserves remained elevated.
For the crypto market, the pause in rate hikes provides much-needed breathing room for short-term capital flows into $BTC . However, the risk of a rate hike later this year remains a hurdle, making investors reluctant to open large leveraged positions in the near term. 🏛️
#Fed #InterestRates #FOMC #CryptoMarket
Notably, two officials dissented, favoring an additional 25-basis-point hike to curb inflation risks stemming from energy costs and the AI investment boom. The dissenting votes suggest the Fed has left the door open to tightening monetary policy again at its next meeting in December if macroeconomic data do not cool.
In response, the U.S. Dollar Index (DXY) edged down to 102.29, while spot gold prices rose slightly to around $4,043 per ounce. Traditional financial markets reacted cautiously to the decision, as the discount rate and the interest rate on excess reserves remained elevated.
For the crypto market, the pause in rate hikes provides much-needed breathing room for short-term capital flows into $BTC . However, the risk of a rate hike later this year remains a hurdle, making investors reluctant to open large leveraged positions in the near term. 🏛️
#Fed #InterestRates #FOMC #CryptoMarket
