Fed holds interest rates steady at 3.75% to 4% as Bitcoin approaches $81K

The Federal Reserve voted 10 to 2 to maintain borrowing costs, with two officials favoring a quarter point increase as inflation remains elevated. The Federal Reserve held its benchmark interest rate steady at 3.75% to 4% on Wednesday, voting 10 to 2 to maintain borrowing costs as policymakers weighed resilient economic growth against persistent inflation pressures. Bitcoin rose modestly following the announcement, attempting to reclaim $81,000 after trading near $80,000 earlier in the session. Traditional financial markets showed a muted reaction, with the S&P 500 edging lower following the decision. The decision was broadly in line with market expectations. Minutes before the announcement, the CME FedWatch tool showed a roughly 93% probability that the central bank would leave rates unchanged, while 7.2% of traders anticipated a 25 basis point increase. Federal Open Market Committee members Lisa D. Cook and Beth M. Hammack dissented from the decision, favoring a quarter point rate increase instead. In its official policy statement, the Fed described economic activity as expanding at a strong pace, supported by resilient domestic spending, robust capital investment and strong ...