Fed Holds Rates at 3.75%-4% as Cook and Hammack Vote for a Hike

The Federal Reserve held its benchmark rate at 3.75% to 4% on Wednesday, Oct. 28, in a 10-2 vote, and said inflation "remains elevated."

Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented. Both wanted a quarter-point hike, the Fed's statement says. It was Cook's first dissent since she joined the Fed in 2022, CNBC reported.

For crypto holders, the Fed rate sets the price of cash. The higher it sits, the more an asset with no yield, like bitcoin, has to compete with interest-paying bills and deposits.

The range stays where September put it

The Fed raised rates a quarter point in September and has held since, according to CNBC and Reuters. This time the statement called growth "expanding at a strong pace" and said more information would help the committee pick its next step. It gave no date for one.

The Fed's implementation note keeps interest on reserve balances at 3.90%, effective Oct. 29.

Neither the statement nor the note changes margin requirements.

Futures still lean toward a December hike

Traders had priced less than a 10% chance of a hike at this meeting, CNBC reported, citing CME Group's FedWatch tool. Investors still expect hikes starting in December, Reuters reported. The next meeting is Dec. 8-9, with new projections.

Chair Kevin Warsh also said one of the eight meetings in 2027 will cover strategy only, with no rate vote and no statement, according to CNBC and Yahoo Finance.

Bitcoin moved little: about $80,800 at 2 p.m. ET and $80,900 at 2:57 p.m., up 0.4% over 24 hours, per CoinGecko.

In our opinion: the hold was the expected part. Two votes for a hike, one of them a first, are what to remember when the Fed meets again Dec. 8-9.