Key dealers
- The Fed maintained interest rates to 4.25%-4.50%, with Powell that avoids commitments on future cuts while removing previous languages on inflation’s progress.
- Bitcoin decreased 1% after the FED’s announcement but remains over $ 100K, currently traded just under $ 102K.
Federal Reserve maintained Interest rates between 4.25% and 4.50% on Wednesday, at the same time as it removed previous languages that recognize progress with inflation from its statement.
Fed chairman Jerome Powell indicated that future interest rate adjustments will depend on incoming data, labor market trends and inflation development.
Bitcoin fell 1% after the Fed’s announcement but maintained levels over $ 100,000 and traded just under $ 102,000. The digital asset had briefly dipped under $ 100,000 earlier this week after China’s Deepseek Ai The launch deleted $ 1 trillion in the global market value.
The central bank noted solid economic growth and stable low unemployment levels, which indicates no immediate need for interest rate cuts.
The meeting marks the first federal open marketing committee gathered during Donald Trump’s second term, with the president who advocates for lower loan costs.
Trump’s administration proposed 25% tariffs on Mexico and Canada, along with a temporarily blocked federal expenditure, complicates the economic outlook.
Market expectations for monetary relief remain active, with the CME Fedwatch tool indicates A probability of 46.5% for a 25-base point cut in June and a chance of 43.5% in July.
The markets are priced at less than 40% probability of further cuts, which indicates expectations of a maximum of two speed cuts in 2025.
