Capital has rotated toward other assets, with gold and silver hitting near daily record highs, gold topping $5,300, and silver reaching $115 on Monday. Equities have also pushed higher, with the S&P 500 hitting a new all-time high above 7,000, underscoring a shift toward traditional safe havens and large-cap stocks over crypto.
In its statement, the Federal Open Market Committee said available indicators suggest economic activity has been expanding at a solid pace. Job gains have remained low, while the unemployment rate has shown signs of stabilization. Inflation remains somewhat elevated.
Policymakers reiterated their commitment to achieving maximum employment and returning inflation to its long-run target of 2%, while acknowledging that uncertainty around the economic outlook remains elevated. The committee said it remains attentive to risks on both sides of its dual mandate.
In support of its goals, the Fed said it will carefully assess incoming data, the evolving outlook, and the balance of risks when considering the timing and extent of future policy adjustments. Officials said they remain prepared to adjust the stance of monetary policy if risks emerge that could impede progress toward their objectives.
The decision was supported by Chair Jerome Powell and a majority of voting members, including John Williams, Michael Barr, Michelle Bowman, Lisa Cook, Beth Hammack, Philip Jefferson, Neel Kashkari, Lorie Logan, and Anna Paulson. Stephen Miran and Christopher Waller dissented, favoring a quarter point rate cut at this meeting.