The Federal Reserve left its benchmark interest rate unchanged at 3.50%-3.75% on Wednesday in the first policy decision under new Chair Kevin Warsh. Policymakers signaled a more hawkish stance by raising projections for rates and inflation through 2028. Bitcoin and major stock indexes slipped after the announcement.
The accompanying policy statement said economic activity is expanding at a solid pace despite uncertainty from the Middle East conflict. It added that inflation remains elevated and that the Committee will deliver price stability.
Policymakers now expect the federal funds rate at 3.8% by the end of 2026, up from the previous 3.4% projection. They also raised their inflation forecasts, with personal consumption expenditure inflation seen at 3.6% this year.
Bitcoin fell from around $66,000 to near $64,400 in the minutes after the decision before stabilizing around $65,300. The S&P 500 and Nasdaq 100 each dropped nearly 1%.
Warsh took over as chair from Jerome Powell last month. Markets now await his post-meeting press conference for clues on future communication strategy.
