Fed Maintains Rates: Crypto Market Pauses
President Trump criticizes Fed Chair Jerome Powell for keeping interest rates unchanged, impacting Bitcoin’s price.
Trump, via Truth Social, labelled Powell as the “WORST.” he blamed the Fed for costing America “Billions.” trump shared a link to national Mortgage News, where Fannie Mae’s and Freddie Mac’s regulator urged Powell to resign if rates stay the same.
Interest rates remain at 4.25% to 4.5%. Since the decision in June, Bitcoin (BTC) has hovered around $104,000, with weak gains. Over two weeks, BTC has seen a modest 0.3% rise.
Why refuses Powell to cut rates? On June 18, the Fed unanimously decided to pause further rate adjustments.In a press conference,Powell stated policymakers are “well positioned to wait.”
Powell mentioned the impact of trump’s tariffs on inflation. He noted: “We have to learn more about tariffs.” The Fed revised its economic growth forecast, indicating a decline for 2025. Inflation is projected to hit 3%, exceeding the targeting 2%.
The Fed’s cautious stance has taken a toll. U.S. stocks fell slightly. The crypto market cap decreased by 2.3% in 24 hours. Major tokens like BTC, ETH, and SOL saw declines.
Though, faster cuts by the Fed could do more harm than good. “We are well positioned to wait,” Powell reiterated, showing the Fed’s commitment to patient policy-making.
