Bitcoin, Ethereum Slip as Hawkish Fed Keeps Rate Hike Risks Alive

• The Federal Reserve kept interest rates unchanged at 3.50%-3.75%, but three policymakers voted for a 25-basis-point increase.
• The central bank said inflation remains above target while economic activity, productivity and investment continue to show strength.
• Bitcoin fell toward $63,300, while Ethereum dropped below $1,900 as traders reassessed the prospect of higher-for-longer interest rates.
• Despite continued institutional inflows into spot Bitcoin ETFs, risk appetite weakened following the Fed’s hawkish message.

Fed Holds Rates but Signals Inflation Fight Is Not Over

The Federal Open Market Committee voted 9-3 to leave the federal funds target range at 3.50%-3.75%, a decision that matched market expectations but carried a firmer policy message than many investors anticipated.

Three officials – Beth Hammack, Neel Kashkari and Lorie Logan – dissented in favor of a 25-basis-point increase, highlighting continued concern that inflation remains above the Fed’s 2% objective.

In its policy statement, the central bank described the U.S. economy as expanding at a solid pace, supported by resilient employment, strong productivity growth and continued business investment. Officials also pointed to energy-related supply shocks as a factor keeping inflation elevated and reiterated their commitment to restoring price stability.

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