Fed Leaves Interest Rates Unchanged
The Fed held rates steady as markets awaited Kevin Warsh’s remarks and tracked bitcoin.
The Federal Reserve kept interest rates unchanged within a range of 3.5% to 3.75%. The decision passed by a 9–3 vote. Beth Hammack, Neel Kashkari and Lorie Logan voted in favor of a 0.25-percentage-point increase.
Following the meeting, Kevin Warsh reaffirmed that the central bank remains committed to its 2% inflation target. He did not rule out further monetary policy tightening but gave no indication of when it might happen. The lack of a clear signal increased uncertainty across financial markets.
The bond market saw the strongest reaction. The yield on 30-year US Treasury bonds rose above 5.20% for the first time since 2007. Wall Street also moved lower, with the S&P 500 falling 1.52%, the Dow Jones losing 2.19% and the Nasdaq 100 ending the session down 2.1%.
Bitcoin did not experience such a sharp move. On July 30, it was trading at around $64,100.
