The Federal Reserve has maintained its interest rate at 4.25% – 4.50% in light of ongoing economic uncertainties related to tariffs and inflation.
Current Economic Situation and Fed Decisions
In the Fed’s meeting, most members agreed that keeping rates at the current level was the right choice. However, two senior officials, Michelle Bowman and Christopher Waller, advocated for a cut, citing signs of a cooling labor market, which was confirmed by weaker-than-expected job data for July.
Politicians' Reactions to Economic Data
President Donald Trump's reaction to the employment data was fierce, leading him to dismiss the head of the Bureau of Labor Statistics, highlighting the high stakes of economic performance as elections approach.
Future Rate Outlook and Bitcoin Impact
All eyes are now on Fed Chair Jerome Powell, who is set to deliver his final speech in Jackson Hole. His remarks will likely shape market dynamics including Bitcoin, which may range from $105,000 to $150,000 depending on his stance.
The situation remains complex, with forthcoming economic reports and Fed leadership statements being critical for understanding the future trajectory.
