The Federal Reserve kept interest rates unchanged amid Middle East tensions and inflation concerns, weighing on risk assets like Bitcoin.
The Federal Reserve left its benchmark interest rate unchanged at a target range of 3.5% to 3.75% on Wednesday, marking the third consecutive meeting without a hike. Policymakers cited solid economic activity but noted elevated uncertainty tied to geopolitical tensions in the Middle East and energy supply shocks.
Bitcoin, the largest cryptocurrency by market capitalization, traded near $65,300 following the announcement, paring earlier gains and slipping over 1% on the day. Despite the decline, it remained 5% higher over the past week. Ethereum and Solana posted stronger weekly gains, rising 7.6% to $1,763 and 13% to $73, respectively.
The Federal Open Market Committee reiterated its commitment to delivering price stability, emphasizing its long-term 2% inflation target. The statement acknowledged progress but underscored persistent challenges, including the impact of global conflicts on economic conditions.