The Federal Reserve did exactly what everyone expected on June 17, and markets still didn’t love it. The FOMC voted unanimously to keep the federal funds rate parked at 3.5% to 3.75%, a decision that was already baked into prices. What wasn’t fully priced in: the Fed’s not-so-subtle hint that a rate increase could still land before the year is out.
Spot gold traded near $4,327 per ounce following the announcement, slipping 0.08%. Bitcoin took a harder hit, falling roughly 1.5% to drop below $65,000 as traders recalibrated their expectations for the rest of 2026.
The Fed’s hawkish hold
The 12-0 vote to maintain rates was accompanied by updated inflation projections that painted a picture of persistent price pressures stretching well into 2027. The CME FedWatch tool currently shows significant probabilities for a rate hike in December 2026.
This is the second consecutive meeting where the FOMC opted to hold steady while maintaining a tightening bias. After the April 29 meeting, gold dropped to one-month lows near $4,528 per ounce amid similar inflation and geopolitical concerns. The fact that gold is now trading nearly $200 lower than those April levels tells you something about the cumulative weight of the Fed’s messaging.
