Fed Holds Rates Steady as Markets Eye December Hike

The Federal Reserve kept interest rates between 3.75% and 4% on October 28. The decision passed with a 10-2 vote. Members Lisa Cook and Beth Hammack dissented and called for an immediate 0.25 percentage point increase.

The financial market now estimates an 83% to 88% chance of a rate hike in December. Fed Chair Kevin Warsh noted that credit conditions are becoming more restrictive. He stated that the committee prefers to wait for new data before determining the next steps for monetary policy.

Bitcoin hovered near $81,000 following the announcement. This level aligns with the average cost basis of United States exchange-traded funds. Analysts observe that the resistance of long-term holders could influence the available market supply.

The high-interest-rate environment tends to pressure risk assets and strengthen the dollar. Continued monetary tightening may limit capital flow into the cryptocurrency market in the short term.