Key points
- The Federal Reserve held its policy rate at 3.75% to 4% on Oct. 28, after raising it in September.
- Two officials, Lisa Cook and Beth Hammack, voted against the decision because they wanted another hike.
- Bitcoin briefly rose above $81,000 after the announcement, then fell below $80,000 the next day.
- Markets now focus on the Dec. 8-9 meeting, where traders see a further hike as likely.
The U.S. Federal Reserve left interest rates unchanged on Wednesday, Oct. 28, keeping its target range for the federal funds rate at 3.75% to 4%. The decision, announced at 2 p.m. Eastern time, paused a tightening move that began in September, but it came with a clear signal that the debate inside the central bank is far from over: two of the twelve voters wanted to raise rates again.
For crypto markets, the reaction was muted at first. Bitcoin, which traded near $80,800 around the announcement according to crypto.news, briefly climbed back above $81,000 before slipping under $80,000 the following day.
A 10-2 vote, with two officials asking for a hike
According to the Fed's statement, the Federal Open Market Committee approved the decision by 10 votes to 2. Governor Lisa Cook and Cleveland Fed President Beth Hammack voted against it because they "preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting."
The split stands out because the previous move, a quarter-point hike on Sept. 16, was unanimous, according to crypto.news. The statement also sounded more upbeat on growth. It said "economic activity is expanding at a strong pace," a step up from the "solid" pace described in September, while noting that "inflation remains elevated." On jobs, the Fed said gains "have kept pace with the workforce, and the unemployment rate has changed little."
