coindesk.com
As fully expected by markets, the U.S. Federal Reserve on Wednesday left benchmark interest rates unchanged, but signaled its intention to tackle stubbornly high inflation.
The bank’s fed funds rate range, for now, remains at 3.75%-4.0%.
“Economic activity is expanding at a strong pace,” said the bank in its policy statement. “While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little.”
“Inflation remains elevated. The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee's 2 percent goal. The Committee will deliver price stability.”
The vote to hold rates was 10-2, with Fed Governor Lisa Cook and Cleveland Fed President Beth Hamack dissenting.
Bitcoin is rising slightly following the news, climbing to $81,000. The 10-year Treasury yield is higher by four basis points to 5.025%, and the two-year yield is up 4.6 basis points to 4.78%.
U.S. stocks continue with small gains for the session.
Despite troubling September inflation reports, a string of Fed speakers this month suggested they were comfortable with a slower pace of monetary policy tightening, leading markets to price out a rate hike today but fully price in one at the central bank’s next meeting in early December.
Fed Chair Kevin Warsh’s post-meeting press conference begins at 2:30 p.m. ET.
