In line with market expectations, the US Federal Reserve kept its key interest rate unchanged at 3.50%-3.75% during its recent meeting, marking the fourth consecutive meeting without any adjustments, as officials continue to balance persistent inflation concerns with indications of slowing economic growth. The Fed stated that it will carefully evaluate incoming data, the evolving outlook, and the balance of risks when considering future adjustments to the target range for the federal funds rate. The decision saw four dissents, with one member advocating for a rate cut and three pushing for a removal of easing bias.
Meanwhile, bitcoin prices remained under pressure, US stocks experienced modest declines, and 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%. As Jerome Powell's term as chairman nears its end, attention is shifting to his successor, Kevin Warsh, who is expected to face challenges in implementing rate cuts. The focus will now be on Powell's post-meeting press conference for insight into the future direction of monetary policy.
Oil prices have rebounded, nearing post-war highs, which poses a dilemma for the US central bank as it must decide whether to prioritize controlling prices or supporting economic growth.