The Federal Reserve kept its benchmark interest rate unchanged at 3.5% to 3.75% on April 29, 2026, as policymakers balanced inflation pressures and economic uncertainty. The decision was widely expected, yet the split vote and hawkish signals triggered a modest sell-off in risk assets, including Bitcoin.
The Federal Open Market Committee voted 8 to 4 to hold rates steady. One dissenter, Stephen Miran, pushed for a 25-basis-point cut, while Beth Hammack, Neel Kashkari and Lorie Logan supported the hold but opposed the easing bias in the statement. The Fed reiterated its commitment to maximum employment and the 2% inflation target, noting it will assess incoming data before further moves.
Shortly after the announcement, Bitcoin slipped from around $76,200 to near $75,000, briefly dipping below that level before recovering to about $75,760. Other market reports showed Bitcoin trading near $75,000 after the decision, down from overnight highs near $77,900. The dollar strengthened and gold futures declined, reflecting a broad reduction in risk appetite.
Earlier the same day, the U.S. Bureau of Economic Analysis released the Personal Consumption Expenditures (PCE) price index for March — the Fed’s preferred inflation gauge. Core PCE (annual) came in at 3.2%, matching expectations but rising from the previous 3.0%. The monthly core PCE was 0.3%, in line with forecasts and down from 0.4% the prior month. Headline PCE (annual) hit 3.5% versus 2.8% previous, matching expectations, while monthly headline PCE rose to 0.7% from 0.4%, also as expected. The data underscored persistent inflation, reinforcing the Fed’s cautious stance.
The ongoing US-Iran conflict added to inflation concerns amid rising energy prices, fueling bets among Wall Street investors that the Fed might even hike rates later this year. Hawkish comments from Fed officials have increased expectations of tighter monetary policy ahead. Bitcoin’s initial reaction to the PCE release was muted, with the cryptocurrency remaining above $75,000 before the subsequent rate decision drove a modest decline.
Investors interpreted the Fed’s message as a risk event, with higher rates making cash and bonds more attractive relative to volatile assets like cryptocurrencies.
