After concluding a meeting of the Federal Open Market Committee (FOMC), the American Federal Reserve published its second political decision for 2025. The recent press release reveals that the Federal Open Market Committee chose to maintain stable interest rates, keeping them from 4.25% to 4.5%. This decision comes after the committee chose to reduce the prices three times in a row last year.
Fed sees two cups this year
At conclusion On the second of the eight planned meetings of the Federal Committee of the Open Market for 2025, which ended on Wednesday, the panel decided to maintain the rate of federal funds with an existing target range from 4.25% to 4.5%.
In addition to their decision, those responsible for the federal reserve revised their interest rate and their economic forecasts until 2027 and adjusted the speed to which they reduce obligations to reduce obligations.
Despite the emerging uncertainties of President Donald Trump’s prices and an aggressive budgetary policy which includes tax reductions and deregulation, those responsible provide for an additional reduction in the rates of half a percentage until 2025. The FED generally adjusts the levels of the stages of the percentage of the quarters, suggesting two potential rate reductions this year.
The post-reunion declaration of the FOMC highlighted an increase in the level of uncertainty in the current economic environment.
Jerome Powell acknowledged that recent inflation data indicate considerable progress towards stabilization, but he stressed that the efforts of the central bank are underway. He said interest rates would remain restrictive to counter the rise in inflation, which is still somewhat high.
The press release stressed that recent indicators indicate a solid expansion of the economy. He noted that the unemployment rate has remained low and stable in recent months, and conditions on the job market continue to be strong.
After the announcement, the BTC price experienced a sharp increase, now oscillating around the $ 85,000 mark. He recorded a gain of more than 4.4% in the last 24 hours.
The global cryptography market remains stable
The cryptocurrency markets underwent minimum turbulence, largely because investors had already assessed the Fed’s decision to leave intact interest rates.
This decision of the federal reserve comes in the midst of economic uncertainties fueled by trade tensions early in the second term of President Donald Trump. Trump’s aggressive imposition of steel prices, aluminum and many other imports, has significantly contributed to volatility in the global financial markets.
In addition to its last rate announcement, the Fed has also revised its expectations for economic expansion, signaling a more prudent perspective. Growth forecasts for this year were reduced to 1.7%, marking a significant drop of 0.4 percentage points compared to the December projection.
On the other hand, the expectations of inflation have increased slightly, central inflation now providing for an annualized rate of 2.8% – to 0.3 percentage points compared to previous estimates.
Interestingly, the latest projections of the Fed, shown in its “dowry intrigue”, suggest an evolution towards the stricter monetary policy compared to December. Previously, only one official expected the rate unchanged in 2025, but now four officials share this point of view, indicating a stronger preference for prudence and perhaps higher interest rates in the future.