The Federal Reserve held its benchmark fed funds rate range steady at 3.50%-3.75% on Wednesday, as expected.

Down nearly 4% ahead of the anticipated decision following a surge in oil prices and poor inflation data earlier on Wednesday, bitcoin remained sharply lower at $71,600 in the moments following the news.

U.S. stocks remain lower for the day, with the Nasdaq and S&P 500 each down by 0.55%. The 10-year Treasury yield remains higher by a tick at 4.21%.

"The implications of developments in the Middle East for the U.S. economy are uncertain," said the central bank in its accompanying statement.

The vote to hold policy steady was 11-1, with Stephen Miran voting to trim rates by 25 basis points.

The Fed also updated its economic projections. Of particular note was a sizable rise in inflation expectations — now seen at 2.7% for 2026 versus 2.4% previously. Inflation, however, is expected to drop to 2.2% in 2027 against 2.1% projected earlier.

The so-called "dot plot" continues to show expectations for one 25-basis-point rate cut in 2026 and one more in 2027.

The U.S. central bank must balance what appears to be a slowing employment market with inflation that remains well above its 2% target. Adding to that is the March attack against Iran, which has sent the price of oil to nearly $100 per barrel versus less than $60 earlier this year.

Investors will now turn their attention to Federal Reserve Chair Jerome Powell’s post-meeting press conference at 2:30 pm ET for further insight into the central bank’s outlook.