The US Federal Reserve kept interest rates unchanged at 3.75%–4.00% on Wednesday, October 28, with 10 policymakers supporting the decision and two dissenting in favor of a 0.25-percentage-point rate increase.
According to the Fed’s statement, Lisa Cook and Beth Hammack opposed holding rates steady, preferring a 25-basis-point hike instead. Their dissent highlights differing views within the central bank over how to respond to persistent inflation and the appropriate direction of monetary policy.
The Fed emphasized that inflation remains elevated and reaffirmed its 2% inflation target. The decision to maintain rates suggests policymakers are continuing to assess economic conditions, but the calls for a hike indicate that some officials remain concerned about inflationary pressures.
Markets will now focus on the Fed’s policy guidance and upcoming remarks for clues about the next decision. A more hawkish outlook could support the US dollar and Treasury yields while putting pressure on risk-sensitive assets, including Bitcoin. A less aggressive tone could help ease concerns about further tightening.
For crypto investors, the key question is whether inflation concerns will push monetary policy toward tighter conditions in the coming months. The Fed’s internal disagreement adds another factor for markets to consider as traders reassess the outlook for interest rates.
