The FED Keeps Rates Constant and Preserves the Status Quo

The Fed again chose immobility on July 29, 2026, by keeping rates frozen between 3.50% and 3.75%. A decision criticized by Peter Schiff, who denounces a deliberate choice in favor of inflation. But what do the markets think?

Fed Rates Frozen: Between Caution and Criticism

On Wednesday, July 29, 2026, the U.S. Federal Reserve (FED) once again kept its key interest rates in the range of 3.50% to 3.75%, marking the fifth consecutive meeting without change. The decision was made by a majority of 9 votes to 3, with three notable dissenters: Loretta Mester (Cleveland), Neel Kashkari (Minneapolis) and Lorie Logan (Dallas), who argued for an immediate 0.25% hike. The Fed justifies this status quo by:

• A still-strong U.S. economy, despite persistent inflationary pressures such as inflation remaining above the 2% target; 
• Geopolitical uncertainties, especially in the Middle East. 

But this caution is far from unanimous. Peter Schiff, an economist known for his hawkish views, did not fail to criticize this approach. According to him, the Fed talks about fighting inflation, but in reality, it favors it. A criticism that resonates especially in a context where gold and cryptos might become safe havens… or collateral damage.

Crypto: Bitcoin Jumps After Rate Hold, Will Altcoins Follow?

From the announcement, Bitcoin reacted positively with an immediate slight rise. A trend that could quickly spread to other cryptos like Ethereum and major altcoins. But why is this rate hold seen as a bullish signal for digital assets?

• Abundant liquidity: Stable rates signal that the Fed avoids (for now) aggressive monetary tightening, which maintains a favorable environment for risky assets like cryptos;
• Expectation of future cuts: Some investors are betting on monetary easing in 2026, which could further stimulate the crypto market;
• Psychological effect: After months of pressure, the status quo is seen as a relief, especially for sector players already hurt by previous rate hikes.

However, caution remains necessary. If the Fed changes tone in September with a now likely hike at 75-80% according to futures markets, cryptos could undergo a sharp correction. Not to mention that three dissenters out of nine is a rare sign of division within the Fed, which adds further uncertainty.

The Fed is holding back and leaving its rates unchanged, Bitcoin is booming. But for how long? Between monetary caution and risk appetite, investors are playing a precarious balance.