- Federal Reserve maintains rates at 4.25%-4.5% amid economic uncertainty.
- Central banks may cut rates as inflation targets are met.
- Market anticipates potential rate cuts later in the year.
Federal Reserve holds interest rates steady at 4.25% to 4.5% during May 2025 meeting in Washington.
The decision reflects a cautious “wait-and-see” approach amidst U.S. economic uncertainties and potential tariff impacts.
Fed’s Rate Hold Aligns with Tariff Concerns
The Federal Reserve’s decision comes as a response to economic challenges. Under Chair Jerome Powell, the central bank decided unanimously to maintain its interest rates. Powell noted that the risk of increased tariffs presents uncertainties in inflation, growth, and employment.
Current interest rates range from 4.25% to 4.5%, a consistent position since December 2024. As inflation aligns with targets, some central banks might reduce rates, potentially clarifying economic pressures in the coming months.
“If the large increases in tariffs that have been announced are sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment” – Jerome Powell, Chair, Federal Reserve source
Bitcoin Holds Above $105K Amid Rate Speculation
Did you know? If the expected rate cuts occur, it will be the first time since the 2008 financial crisis that the Federal Reserve reduces rates thrice in a year as part of an economic stabilization strategy.
Bitcoin, symbol BTC, is currently priced at $105,299.11, according to CoinMarketCap. Bitcoin holds a 63.07% market dominance, supported by a market cap of $2.09 trillion. In the last 24 hours, its trading volume reached $47.01 billion, marking a 20.93% change. Price trends show a 0.10% decrease over 24 hours, but a 9.74% increase over 30 days.
[Coincu](https://www.federalreserve.gov/releases/h15/) research suggests that current interest rate stability may ease pressure on cryptocurrency markets if economic downturns intensify. Technological advancements and regulatory adjustments are also pivotal as digital assets navigate the shifting financial landscape.
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