On Wednesday, the Federal Reserve kept its benchmark federal funds rate range stable at 3.50%-3.75%, as expected.
Bitcoin fell nearly 4% ahead of the expected decision due to a surge in oil prices and poor inflation data early Wednesday, but still fell sharply to $71,600 after the news broke.
Market participants also don’t expect the Fed to cut interest rates at its next meeting on April 29, with the CME FedWatch tool showing a 97% chance of rates remaining unchanged. Currently, only one additional rate cut is priced in by the end of the year.
The Fed must balance a job market that appears to be slowing with inflation that remains well above its 2% target. Additionally, attacks on Iran in March caused oil prices to rise to nearly $100 a barrel, compared with less than $60 a barrel earlier this year.
Investors will now turn their attention to Federal Reserve Chairman Jerome Powell’s post-meeting press conference at 2:30 p.m. ET for further insights into the Fed’s outlook.
