The Federal Reserve held its benchmark rate at 3.75% to 4% on Oct. 28, with two officials voting for another quarter-point increase. Bitcoin briefly rose above $81,000 after the statement, then slipped back.
The Federal Reserve held its benchmark interest-rate target at 3.75% to 4% on Oct. 28 in a 10-2 vote, and both dissenters wanted higher rates. Bitcoin briefly rose above $81,000 after the statement before slipping below its pre-release level.
Two officials dissent in favor of a hike
Lisa Cook and Beth Hammack preferred a quarter-percentage-point increase, according to the Federal Open Market Committee's statement. The majority left rates unchanged, describing inflation as elevated and saying more information would help determine the appropriate policy stance.
The split follows a unanimous Sep. 16 vote to raise rates by 25 basis points, which brought the benchmark range to its current level. Before the decision, KPMG's Oct. 22 preview forecast an unchanged rate and a December hike, and it identified a risk of one dissent favoring higher rates.
The statement also upgraded its description of growth to a strong pace from solid in September. According to the committee's statement: "The Committee will deliver price stability".
Bitcoin gives back its brief gain
On Coinbase, Bitcoin reached $81,093 during the 2:03 p.m. ET minute, up 0.41% from $80,763 just before the 2 p.m. release. By the end of the 2:07 p.m. minute it was back at $80,709, down 0.07% from that baseline.
Analysis published before the decision put $80,000 as immediate support, with $78,000 and $76,000 below it. Citing analyst Rekt Capital, the same report said Bitcoin needed to regain $81,400 as a three-day closing level.
Inflation data frames the next meeting
The Bureau of Labor Statistics put September annual consumer inflation at 3.7%, up from 3.4% in August. Gasoline prices climbed 9.1% in September, according to the agency, and accounted for more than half the monthly rise in the headline index.
The next scheduled Fed meeting falls on Dec. 8-9, when the committee is also due to publish economic projections. Another rate hike remains the outcome the two dissenters sought.
Sources: crypto.news, The Defiant
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