In line with market expectations, the US Federal Reserve kept its benchmark federal funds rate unchanged at 3.50%-3.75% on Wednesday, marking the fourth consecutive meeting without a rate adjustment as policymakers weigh the risks of persistent inflation against signs of a slowing economy. The Fed stated in its policy statement that it will 'carefully assess incoming data, the evolving outlook, and the balance of risks' when considering future adjustments to the federal funds rate target range. There were four dissenting votes on the rate decision, with one being dovish and three being hawkish.

Fed Governor Stephen Mirran advocated for a 25-basis-point rate cut, while Beth Hammack, Neel Kashkari, and Lorie Logan preferred to maintain the current rate while removing any easing bias. Bitcoin prices remained under pressure, trading about 0.5% lower over the past 24 hours at $76,476.24, just below $76,000. US stocks experienced modest declines, with the Nasdaq down 0.35%. Yields rose, with the two-year Treasury increasing by 9 basis points to 3.93% and the 10-year Treasury rising by 5 basis points to 4.40%.

Today's central bank meeting is likely to be Jerome Powell's last as chairman, as his term ends on May 15. His successor, Kevin Warsh, cleared a Senate Banking Committee vote earlier on Wednesday, putting him on track to take over as Powell steps down. The three hawkish dissents suggest that Warsh may face challenges in implementing rate cuts, even if that is his desired direction. Market attention will now shift to Powell's post-meeting press conference, where traders will seek clues on the future direction of monetary policy.

After a sharp decline earlier this month amid hopes for a lasting peace between the US and Iran, oil prices have rebounded to near their post-war highs, with WTI crude trading just shy of $105 per barrel. Higher energy costs can contribute to increased inflation, but they can also slow economic activity, putting the US central bank in a difficult position: which of its mandates – controlling prices or promoting economic growth – should it prioritize?