At the Federal Reserve's meeting on May 6-7, it was decided to keep interest rates unchanged. This is the third consecutive meeting where rates remain at 4.25% to 4.50%.
Fed's Decision on Rates
The Federal Reserve has once again kept interest rates steady. Fed Chair Jerome Powell noted that inflation is still too high and the economy is showing signs of slowing down. He stated that the Fed is being cautious and wants to ensure that economic conditions are under control before making any moves.
Ongoing Inflation Issues
Powell made it clear that it is too early to lower rates. He mentioned that the Fed needs stronger evidence that inflation is decreasing persistently. New tariffs on Chinese imports are adding further complications, as they may drive up the costs of imported goods, leading to greater inflation.
Crypto Market Reaction
The crypto market reacted positively, experiencing a surge of 2.80%, with a total market cap of $3.07 trillion. Major cryptocurrencies like Bitcoin, Ethereum, and XRP showed price increases, indicating stability and growing confidence in digital assets.
The Fed's decision to keep interest rates unchanged is a significant step amid uncertainty, and the positive reaction from the crypto market confirms the growing confidence in digital assets.
