Metric | Value |
|---|---|
Fed funds range | 3.75% - 4.00% |
FOMC vote | 10-2 |
BTC price | $81,102 |
BTC 24h | +0.6% |
10-year Treasury yield | 4.99% |
The Federal Reserve left its target range for the federal funds rate at 3.75%-4% on Wednesday in a 10-2 vote, with both dissenters calling for a 25 basis point increase. Bitcoin trades at $81,102, up 0.6% over 24 hours.
What the statement says
According to the FOMC statement, economic activity is "expanding at a strong pace", domestic spending has been resilient and capital investment is robust. The committee says inflation "remains elevated" and that more information will help it determine the policy stance needed to return inflation to the 2% goal.
- Target range: 3.75%-4%, unchanged
- Vote: 10 for holding, 2 against
- Dissenters: Lisa Cook and Beth Hammack, both for +25 bp
- The Fed continues its policy of maintaining ample reserves in the banking system
Why the dissents matter
Both dissents were for a hike, not a cut. No committee member voted for a lower rate.
The minutes of the September meeting show the Open Market Desk survey already placed a considerable probability on at least 25 bp of policy firming by year-end.
Inflation is still far from target
Fed staff estimated in September that total PCE inflation was 3.8% in August, with core at 3.4%, both above year-earlier levels. Risks to the inflation forecast were seen as skewed to the upside, and a return to 2% was projected only for 2029.
The minutes cite past tariff increases, higher energy costs from geopolitical developments and rising prices for technology goods tied to the AI buildout. The unemployment rate was 4.1% in July and August.
The minutes also note that the European Central Bank raised its policy rate, citing inflation pressures from the Middle East conflict.
Treasury yields have pulled back from the peak
The 10-year Treasury yield stood at 4.99% on Tuesday, down from a 5.31% peak on October 5, according to US Treasury data.
Maturity | October 5 | October 27 |
|---|---|---|
2-year | 4.84% | 4.70% |
10-year | 5.31% | 4.99% |
30-year | 5.66% | 5.30% |
Bitcoin after the decision
Bitcoin trades at $81,102, up 0.6% over 24 hours but down 4.3% on the week. The price sits 35.7% below the all-time high of $126,080.
Asset | Price | 24h | 7d |
|---|---|---|---|
BTC | $81,102 | +0.6% | -4.3% |
ETH | $2,356.59 | +0.5% | -6.4% |
BTC 24-hour trading volume stands at $24.8B on a market cap of $1.63T. ETH volume is $8.9B with a market cap of $287.9B.