Bitcoin price has climbed toward $64,400 after the Federal Reserve kept interest rates unchanged at the end of its July policy meeting. The central bank held its benchmark rate at 3.50% to 3.75%, extending its pause for a fifth straight meeting.
Fed Keeps Rates Unchanged After Split Vote
The Federal Open Market Committee voted 9-3 to keep rates steady after its July 28–29 meeting. Minneapolis Fed President Neel Kashkari, Dallas Fed President Lorie Logan, and Cleveland Fed President Beth Hammack dissented.
The three officials preferred a 25-basis-point rate increase, showing that inflation concerns remain active inside the central bank. The split decision also marked a more hawkish outcome than a unanimous hold.
The Fed said economic activity continued to expand at a “solid pace,” while job gains had “kept pace with the workforce.” The policy statement also said inflation remains above the central bank’s 2% target.
Officials repeated that the “committee will deliver price stability,” keeping attention on future rate decisions. The statement suggested policymakers are not ready to ease policy while inflation risks remain present.
Inflation and Oil Prices Keep Pressure on Fed
The Fed’s decision came as renewed Middle East tensions pushed oil prices higher again. Higher energy prices can raise inflation pressure if transport, fuel, and production costs feed into broader prices.
The latest inflation data gave policymakers some relief before the meeting. June core consumer prices slowed to 2.6% from 2.9% in May, while headline inflation fell to 3.5% from 4.2%.
A near 10% drop in gasoline prices helped pull headline inflation lower during June. However, the recent rebound in oil prices has renewed questions about whether that decline can continue.
Several Fed officials had signaled before the meeting that they supported holding rates steady. Fed Governors Lisa Cook, Chris Waller, and Philip Jefferson had favored patience while watching inflation data.
Logan had taken a different view earlier in July. She said inflation had stayed too high for too long and argued that “modestly higher interest rates would better” fit current conditions.
Hammack also pointed to broad price pressures before the decision. She said businesses had told the central bank that action was needed to curb inflation.
Bitcoin and XRP React After FOMC Decision
Bitcoin traded near $64,400 after the Fed decision, while XRP changed hands near $1.08. Ethereum traded around $1,917.43, and Solana stood near $73.97 at the time of reporting.
Source: CoinCodex
The reaction showed modest support for crypto prices after the Fed avoided a surprise rate increase. Digital assets had traded cautiously before the announcement because higher rates can pressure risk-sensitive markets.
The Crypto Fear & Greed Index stood at 28, reflecting “Fear” among traders. Sentiment improved from earlier “Extreme Fear” readings, although traders remained cautious after the split Fed vote.
Fed Chair Kevin Warsh has focused on returning inflation to the 2% target. However, he has offered limited direction on the rate path, leaving markets focused on each policy statement.
President Donald Trump had urged lower rates before the decision and said, “We should have the lowest interest rate in the world, like it used to be 30 years ago.” The Fed still chose to hold rates steady.
