The Federal Reserve maintained interest rates at 4.25%-4.5%, despite Donald Trump's calls for cuts, focusing on inflation risks and a steady labor market.
Fed's Decision on Rates
The Federal Reserve decided to keep rates at 4.25%-4.5% despite stronger-than-expected GDP data. This decision underscores the primacy of economic indicators over external pressures, especially in light of persistent inflation risks.
Political Pressure and Fed Independence
Donald Trump continues to advocate for lower interest rates, but the Fed, under Chair Jerome Powell, shows its independence by focusing on employment stability and ongoing inflation risks.
> "Recent indicators suggest that the growth of economic activity moderated in the first half of the year. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated." — Jerome Powell, Chair, Federal Reserve.
Crypto Market Response after Fed Announcement
Crypto markets, including Bitcoin and Ethereum, did not show significant volatility following the Fed's decision. High interest rates continue to limit flows into risk assets, indicating that crypto markets are responding more to fundamental changes than to macroeconomic shifts.
The discussion surrounding the Federal Reserve's decisions showcases its commitment to managing long-term inflation and economic stability, maintaining balance during uncertain economic times.
