As anticipated, the US Federal Reserve kept its benchmark federal funds rate steady at 3.50%-3.75% on Wednesday, marking the fourth consecutive meeting without a change, as officials balance persistent inflation risks and signs of slowing economic growth. The Fed stated 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. Four dissents were recorded, with one dovish and three hawkish votes.
Bitcoin prices remained under pressure, declining by approximately 0.5% over the past 24 hours, while US stocks experienced modest declines and yields increased. This meeting is likely to be the last presided over by Jerome Powell, whose term ends on May 15, and will be succeeded by Kevin Warsh, who cleared a Senate Banking Committee vote. The three hawkish dissents indicate that Warsh may face challenges in implementing rate cuts. Market attention will now focus on Powell's post-meeting press conference for clues on the future direction of monetary policy.
Oil prices have rebounded to near post-war highs, with WTI crude trading just below $105 per barrel, posing a challenge for the US central bank as it weighs its priorities between inflation and economic growth.