The Federal Reserve left its benchmark rate range unchanged at 3.50% to 3.75% on Wednesday, extending its pause for a sixth straight meeting as policymakers continue to battle stubborn inflation.
“Inflation remains high relative to the 2% target set by the Committee, partly reflecting supply shocks that have led to price increases in some sectors, including energy,” the policy statement said.
“Economic activity is growing at a sustained pace despite elevated uncertainty due, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong,” the statement added. “Job creation has kept pace with the active population, and the unemployment rate has changed little. »
Three committee members dissented, preferring to increase rates by 25 basis points. Nine voted to keep the policy in place.
Bitcoin soared above $64,400 following the decision, up more than 1% in the past 24 hours. The S&P 500 and Nasdaq rebounded, paring earlier declines. Gold also rose, up 1.2% on the day.
The decision came after one of the most uncertain pre-meeting setups in years. Futures markets had assigned about a 65% probability to a hold and a 35% probability to a quarter-point increase, according to CME FedWatch data.
