Federal Reserve holds rates as dot plot turns hawkish
The Fed kept rates at 3.50%-3.75% in Kevin Warsh's first meeting as chair, while hawkish signaling and Iran Strait of Hormuz remarks helped keep Bitcoin and other risk assets near local lows.
The Federal Reserve left its benchmark rate unchanged for a fourth meeting at 3.50%-3.75% in Kevin Warsh's first meeting as chair, but the latest dot plot and a shorter statement that removed an earlier easing bias were widely read as hawkish. Commentary said the shift reinforced expectations that rates will remain unchanged this year, with Warsh's emphasis on price stability adding to concerns about a firmer policy path. Bitcoin showed muted volatility after the meeting but stayed near local lows, with tighter-policy expectations and renewed geopolitical tension tied to Iran's remarks about the Strait of Hormuz appearing to limit risk appetite.
- dot plot: Federal Reserve officials' projections for the future path of interest rates.
- easing bias: A policy signal suggesting a central bank is inclined toward lowering interest rates or otherwise loosening monetary conditions.
- Strait of Hormuz: A key oil shipping chokepoint in the Gulf that can affect global energy markets and broader risk sentiment.