In line with market expectations, the US Federal Reserve maintained its benchmark federal funds rate range at 3.50%-3.75% on Wednesday, marking the fourth consecutive meeting without a change, as officials balance persistent inflation risks with signs of slowing economic growth. The Fed stated that it will carefully evaluate incoming data, the evolving outlook, and the balance of risks when considering further adjustments to the target range for the federal funds rate. Four dissents were recorded, with one being dovish and three hawkish. Fed Governor Stephen Mirran advocated for a 25 basis point rate reduction, while Beth Hammack, Neel Kashkari, and Lorie Logan preferred to keep rates steady while removing any easing bias.
Bitcoin prices remained under pressure, trading 0.5% lower over the past 24 hours, while US stocks experienced modest declines. Yields increased, with the two-year Treasury rising 9 basis points to 3.93% and the 10-year Treasury up 5 basis points to 4.40%. Today's central bank meeting is likely to be Jerome Powell's last as chairman, with his term ending on May 15. His replacement, Kevin Warsh, is set to take over after passing 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 close to $105 per barrel, posing a challenge for the US central bank as it must prioritize between its mandates of controlling prices and promoting economic growth.