After concluding the Federal Open Market Committee meeting (FOMC), the American Federal Reserve issued its second decision in politics for 2025. The last press statement reveals that the Federal Open Market Committee has chosen to maintain fixed interest rates, while maintaining it in the range of 4.25 % to 4.5 %. This decision comes after the committee chose to reduce prices three times in a row last year.
FED sees discounts this year
in conclusion From the second of the eight meetings established by the Federal Market Committee for the year 2025, which concluded on Wednesday, the committee decided to maintain the rate of federal funds in the current target range of 4.25 % to 4.5 %.
In addition to their decision, federal reserve officials reviewed the interest rate and their economic expectations until 2027 and adjusting the speed they are expanding the scope of bond holdings.
Despite the uncertainty arising from President Donald Trump’s tariff and aggressive financial policy that include tax cuts and the abolition of organizational restrictions, officials expect an additional price reduction by half a percentage to 2025. The Federal Reserve usually controls price rates in the percentage of the percentage points, indicating discounts in potential prices this year.
The post -compensation statement in FOMC highlighted the level of uncertainty in the current economic environment.
Jerome Powell acknowledged that recent inflation data indicates great progress towards stability, yet he highlighted that the central bank’s efforts are continuing. He stated that interest rates will remain restricted to facing high inflation, which is still somewhat high.
The press statement highlighted that modern indicators indicate a strong expansion in the economy. He pointed out that the unemployment rate has been low and stable in recent months, and conditions in the labor market are still strong.
After the announcement, the BTC price saw a sharp increase, and it is now hovering around the mark of $ 85,000. It has recorded more than 4.4 % in the past 24 hours.
The encryption market in general is still stable
The cryptocurrency markets witnessed the minimum disorders, due to the fact that investors have already priced the decision of the Federal Reserve to leave interest rates without touching.
This decision comes from the Federal Reserve, amid the economic uncertainty fueled by commercial tensions early in President Donald Trump’s second term. Trump’s aggressive imposition of definitions on steel, aluminum and many other imports contributed greatly to fluctuations through global financial markets.
In addition to the latest declaration of the rate, the Federal Reserve also reviewed the forecasts of economic expansion, indicating more cautious expectations. The growth forecast for this year has been cut into 1.7 %, which represents a remarkable decrease of 0.4 points compared to the fall of December.
On the other hand, inflation expectations have increased slightly, with the basic inflation that is now expected to reach an annual rate of 2.8 % – a percentage point 0.3 of previous estimates.
Interestingly, the latest expectations of the Federal Reserve, shown in the “Point of Point”, indicate a move towards a more strict financial policy compared to December. In the past, the official rate expected has never remained unchanged in 2025, but now four officials participate, indicating a stronger preference for caution and possibly high interest rates in the future.
