Bitcoin fell to $63,890, and Ethereum dropped to just above $1,900 after the Fed held rates at 3.5%-3.75%, with 3 members dissenting in favor of an immediate hike.
Ethereum and Bitcoin News
The Federal Reserve held its benchmark fed funds rate at 3.50%-3.75% on July 29, extending its pause for a sixth consecutive meeting. Nine committee members voted to keep policy unchanged.
Three regional bank presidents, Beth Hammack of Cleveland, Neel Kashkari of Minneapolis, and Lorie Logan of Dallas, voted in favor of an immediate 25-basis-point hike, the most hawkish dissent of Chair Kevin Warsh's tenure.
The Fed's policy statement said inflation remains above its 2% target, attributing part of the pressure to supply shocks including energy price increases tied to the conflict in the Middle East. The statement also described the economy as expanding at a solid pace, with strong productivity growth, capital investment, and a stable unemployment rate.
Markets Were Split Going Into the Decision
The July 29 decision came after one of the more uncertain pre-meeting setups in recent years. Futures markets had priced a roughly 65% probability of a hold and a 35% chance of a quarter-point increase ahead of the announcement, according to CME FedWatch data. Oil climbed nearly $4 to $83 a barrel before the decision was released, adding to inflation pressures that supported the hawkish argument.
Bitcoin (BTC) briefly dipped around 1% to $63,890 following the announcement before recovering to above $64,400, up over 1% over the prior 24 hours.
Ethereum (ETH) fell by about 1% to just above $1,900 in the immediate aftermath. The S&P 500 and Nasdaq initially sold off before trimming losses, while gold rose 1.2% through the day.
No updated Summary of Economic Projections was released alongside the July decision. The Fed's next dot plot, which maps where policymakers expect rates to go, is scheduled for September. Nearly half of FOMC members had signaled at the June meeting that they would support a rate hike before year-end, keeping the possibility of a September move in play.
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Warsh's Communication Style Remains Minimal
The decision marks the fifth consecutive hold since the committee cut rates by 25 basis points in December 2025, the last policy move made under former Chair Jerome Powell before Warsh took over. Warsh has pledged to share less forward guidance than his predecessors, leaving markets with fewer signals about the direction of future policy.
After the decision, attention turned to Warsh's post-meeting press conference. Warsh has been openly critical of the Fed's traditional use of forward guidance and the quarterly dot plot, and investors were watching for signs that the central bank's communication approach is shifting under his leadership. The next FOMC decision is scheduled for Sept. 16, 2026, when updated economic projections and a new dot plot will be released.
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