Federal Reserve Maintains Rates Steady Amid Growing Economic Concerns
Economy/Finance/Market News

Federal Reserve Maintains Rates Steady Amid Growing Economic Concerns

The U.S. Federal Reserve has opted to keep interest rates unchanged as they express concerns over risks of rising unemployment and inflation.

As anticipated, the U.S. Federal Reserve decided to maintain the federal funds rate within the 4.25%-4.50% range, marking its third consecutive meeting without any changes to monetary policy. The Fed highlighted increased uncertainty regarding the economic outlook, stating, “The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.”

Following the announcement, Bitcoin, which fluctuated below $97,000 earlier in the day, was trading at $96,600. Policymakers are presently navigating a complex economic landscape influenced by tariffs introduced during the Trump administration, where inflation rates are proving resilient above the 2% target.

As market players anticipate three potential rate cuts this year, with July being the favored period, Fed officials remain cautious, awaiting more clarity on tariff impacts before implementing any changes.

All eyes are now directed at Powell’s forthcoming address scheduled for 2:30 PM ET (18:30 UTC), as it may offer critical insights into the Fed’s future monetary policy decisions.

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