Bitcoin’s price remained stable, hovering above $104,000, as the U.S. Federal Reserve decided to keep interest rates steady at 4.25%-4.50% during their June session. This decision aligns with a broader expectation for the economy’s growth to slow and inflation to rise.

Key Highlights:

• The Federal Reserve altered its growth and inflation forecast, now predicting lower GDP growth and heightened inflation this year.
• Future projections revealed fewer anticipated rate cuts than previously expected during the next few years.

The Fed’s statement indicated that, despite fluctuations in net exports, economic activity continues to grow at a healthy rate. The unemployment rate remains low, and labor market conditions are solid. Inflation persists at somewhat high levels.

Policymakers have downgraded their growth outlook, expecting a GDP increase of just 1.4% this year, down from a prior estimate of 1.7%. Additionally, inflation rates for Personal Consumption Expenditures (PCE) are anticipated to reach 3% and 3.1%, an increase from earlier forecasts.

In light of these developments, Bitcoin was trading at roughly $104,200 post-announcement, and traders are now looking forward to comments from Fed Chair Jerome Powell scheduled later in the day for additional insights into the Fed’s monetary policy outlook.