As anticipated by the market, the US Federal Reserve maintained its benchmark interest rate range at 3.50%-3.75% on Wednesday, marking the fourth consecutive meeting without a change, as officials balance persistent inflation risks against 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 further adjustments to the target range for the federal funds rate. The decision saw four dissents, with one dovish and three hawkish votes.
Bitcoin prices remained relatively stable, while US stocks experienced modest declines. The two-year and 10-year Treasury yields increased by 9 and 5 basis points, respectively.
With Jerome Powell's term as chairman ending on May 15, attention is focused on his replacement, Kevin Warsh, who is expected to take over after passing the Senate Banking Committee vote. The central bank's next steps will be closely watched, particularly in light of rebounding oil prices, which have reached near post-war highs, and the potential impact on inflation and economic growth.