The Federal Open Market Committee (FOMC) has decided to keep the benchmark federal funds rate unchanged at 4.25% to 4.50%.
The move reflects the Fed’s cautious approach amid mixed signals on inflation, employment, and broader economic momentum.
Recent data indicates that the U.S. economy continues to grow at a solid pace, despite fluctuations in net exports. The unemployment rate remains low, and the labor market appears stable, the Fed noted. However, inflation remains above target, suggesting persistent pricing pressure.
The central bank reiterated its long-term goals of achieving maximum employment and inflation near 2%, but acknowledged that balancing both has become more difficult.
Bitcoin Climbs After Fed Statement
In the hours following the Fed’s announcement, Bitcoin rose to around $96,400, marking a 1.6% gain over 24 hours, based on data from CoinMarketCap. The world’s largest cryptocurrency had briefly traded near $97,500 earlier in the day but remains below the $100,000 level it last held in late February.
Crypto markets, often sensitive to monetary policy shifts, appear to be responding to the Fed’s balanced tone and decision to pause further rate hikes for now.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/fed-holds-interest-rates-steady-how-did-bitcoin-react/