On July 30, 2025, the Federal Reserve, led by Jerome Powell, decided to maintain interest rates despite pressure from President Donald Trump to lower them.
Federal Reserve Decision
The Federal Reserve decided to keep its benchmark interest rate at 4.25%–4.5%. This decision was made in the context of ongoing inflation concerns and the need to maintain macroeconomic stability.
Market Reaction and Cryptocurrency Stability
Financial markets, including cryptocurrencies, showed no immediate adverse reactions to this decision. Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) remained stable, with no noticeable changes in key metrics such as Total Value Locked (TVL) or staking flows.
Macroeconomic Impact
The actions of the Federal Reserve have broad macroeconomic implications. Inflationary pressures persist partly due to tariffs implemented by the administration. Jerome Powell stated, "The Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent."
Amid political pressures, the Federal Reserve continues to adopt a cautious approach, currently aiding market stability and preserving economic balance.
