Bitcoin and Gold Rise Following Fed's Split Vote on Interest Rates
The Federal Reserve maintained its interest rate target range of 3.50% to 3.75%, but three policymakers voted in favor of a quarter-point increase, marking the most contested decision during Kevin Warsh’s tenure as chair. Bitcoin and gold prices surged shortly after the announcement as traders adjusted their expectations for future hikes. The split vote highlighted internal disagreements within the Federal Open Market Committee (FOMC), with all dissenters representing regional reserve banks. The Fed's statement reiterated that economic activity is expanding solidly, though inflation remains above its 2% target due to supply shocks and energy costs. Traders had priced in a roughly 30% chance of a rate hike before the decision was announced. Following the hold, interest rate swaps reduced expectations for a September increase. Bitcoin rose by about $1,000 within an hour after the announcement, reaching intraday highs near $64,700 and closing at around $64,325 with a market cap of $1.29 trillion. Gold also climbed to over $4,084 before settling back toward $4,076.
Topics: Bitcoin Federal Reserve gold interest rates