The U.S. Federal Reserve has decided to maintain interest rates unchanged, considering current economic conditions and inflationary threats.
Fed Decision and Its Causes
On June 18, during the FOMC meeting, the Federal Reserve decided to keep the interest rates steady between 4.25% and 4.5%. Fed Chair Jerome Powell highlighted that tariffs imposed by Donald Trump are significantly contributing to new inflationary pressures. Although inflation has come down from its 2023 highs, Powell noted that trade tensions and tariffs are slowing the Fed's plans to lower interest rates.
Economic Forecasts and Changes
According to Reuters, the Federal Reserve also adjusted its 2025 GDP forecast down to 1.4% from 1.7% while raising the inflation estimate to 3% from 2.7%. The use of more optimistic language in the official statement signals that the Fed has grown more confident about the economy compared to earlier meetings.
Crypto Market Situation
After the Fed's announcement, the crypto market did not experience significant movements. Bitcoin dropped to $103,000 just before the meeting but has since recovered to almost $105,000. Other cryptocurrencies such as Ethereum and XRP also saw slight gains. Investors appear to be waiting for clearer signals regarding potential rate cuts before making decisions.
The Fed's decision to leave rates unchanged and its cautious messaging highlight ongoing concerns regarding inflation, particularly due to tariff pressures. However, the subtle shift in economic messaging and the robust labor market offer optimism for possible easing in the near future.
