The Federal Open Market Committee (FOMC) decided to hold its benchmark interest rate within the 3.75% to 4.00% range in a 10-2 vote on Wednesday (28/10/2026). The US central bank reiterated that inflation remains elevated and that additional data is required to ensure price pressures return to the 2% target. Annual inflation stood at 3.7% in September, driven by a 9.1% surge in gasoline prices.
The Fed’s official statement also upgraded its assessment of US economic growth, shifting its language from a “solid pace” in September to a “strong pace” in October. The upgrade indicates that economic activity remains brisk despite restrictive interest rates. However, consensus at the Fed’s meeting table was not unanimous.
Two Officials Call for 25-Point Hike
Two Fed officials broke ranks by dissenting against the final vote outcome. Governor Lisa Cook and Cleveland Fed President Beth Hammack favored an additional 25-basis-point, or 0.25-percentage-point, rate hike. Both chose not to back the committee majority’s decision to leave interest rates unchanged.
The number of dissenters at the October meeting actually marked a decrease compared to July 2026, which recorded three dissents. The shift in voting dynamics occurred after Neel Kashkari and Lorie Logan aligned with the committee majority this time around.
Persistently high interest rates also continued to weigh on the bond market. The 10-year US Treasury yield hovered at 4.99% after briefly touching a peak of 5.31% in early October, sustaining yield competition between risk-free assets and cryptocurrencies.
Where Market Bets Are Shifting
Futures traders tracked by CME FedWatch had broadly anticipated the rate pause, pricing in a 90% probability. Because the pause was already priced in by the market, the official announcement triggered no sudden shocks across exchanges.
Market attention now turns to the upcoming FOMC meeting on December 8-9, 2026. CME FedWatch data shows the probability of a rate hike at the year-end meeting now stands above 70%, signaling that markets are preparing for potential further tightening.
In response to the announcement, Bitcoin traded steadily with minimal volatility. The leading cryptocurrency held between $80,800 and $80,950, demonstrating price resilience shortly after the official documents were made public.
For crypto market participants, Bitcoin’s ability to hold near $80,800 provides short-term reassurance. However, the greater than 70% odds of a December rate hike serve as a reminder that competition from risk-free yields is unlikely to subside anytime soon.
Reported via Decrypt.
Previously: Bitcoin Drops Back Below $80,000 Ahead of Fed Decision - Analysts Flag $75,000 as Critical Level
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
