The Federal Reserve has decided to keep its key interest rates unchanged in the 4.25 % - 4.50 % range for the fourth consecutive time, reflecting a desire for stability amid economic uncertainties.
Fed and Political Pressure
During the June 18 meeting, the Fed, despite pressure from Donald Trump to ease monetary policy, kept interest rates stable. Fed Chair Jerome Powell justified this decision by emphasizing the importance of patience and the need for clear forecasts on inflation, stating:
> "We will make better and more informed decisions if we wait a few more months or as long as necessary to get a real sense of how this will transmit to inflation."
Economic Forecasts and Their Significance
Alongside its decision to maintain rates, the Fed revised its economic forecasts. The expected GDP growth rate is now 1.4 % for the year-end, down from 1.7 % in March, indicating a slowdown in economic performance. Inflation is anticipated to rise to 3 %, significantly above the 2 % target.
Impact on Financial Markets
These decisions and projections reflect a more complicated picture for the global economy, which may affect financial markets, including cryptocurrencies. The emphasized need for patience may lead to reduced interest in riskier assets amid ongoing uncertainty following the Fed’s decision.
In conclusion, the Fed maintains its autonomy from political pressure while highlighting the necessity for caution, signaling important implications for investors and financial markets.
