Federal Reserve maintains current policy amid considerations of economic growth and inflation.

Bitcoin continued to trade significantly lower during the session following the anticipated announcement from the U.S. central bank.

Key points:

• As anticipated, the Federal Reserve maintained its benchmark fed funds rate range at 3.50%-3.75%.
• Bitcoin continued to trade significantly lower, priced at $71,600.
• Chairman Jerome Powell’s press conference following the meeting is scheduled for 2:30 PM ET.

Article Overview

RLUSDRLUSD$0.9996◢0.02%

The Federal Reserve kept its benchmark fed funds rate range steady at 3.50%-3.75% on Wednesday, as was expected.

After a decline of nearly 4% ahead of the awaited decision, attributed to a spike in oil prices and disappointing inflation data earlier on Wednesday, bitcoin remained markedly lower at $71,600 following the announcement.

Market observers are not anticipating a rate cut from the Fed at its next meeting on April 29, with the CME FedWatch Tool showing a 97% likelihood that rates will stay the same. Currently, only one additional rate cut is projected for the remainder of the year.

The U.S. central bank faces the challenge of reconciling what seems to be a decelerating job market with inflation that is significantly above its 2% target. Additionally, the March conflict involving Iran has driven oil prices to nearly $100 per barrel, in contrast to below $60 earlier this year.

Investors will now focus on Federal Reserve Chair Jerome Powell’s press conference following the meeting at 2:30 PM ET for further clarification on the central bank’s perspective.