Bitcoin, Ethereum Steady as Fed Leaves Interest Rates Unchanged
The Federal Reserve kept its benchmark interest rate unchanged at 3.50%-3.75%, emphasizing a data-driven approach to balancing inflation and labor market stability. Despite White House pressure for faster rate cuts, and two Federal Open Markets Committee members favoring a 25 basis point reduction, the central bank opted for caution amid ongoing economic uncertainty. Job growth remained subdued, unemployment rates stabilized around 4.4%, and annual inflation stood at 2.7%. Internal divisions within the Fed reflect differing views on the economy’s resilience and inflation trends. Ongoing factors complicating the outlook include changes in immigration, trade policies, and data gaps from last year’s government shutdown. Financial markets responded modestly, with Bitcoin and Ethereum gaining around 2%. Investors anticipate the first rate cut of the year could occur in June. President Trump is expected to name a new Fed Chair soon, as Jerome Powell’s term expires in May. Meanwhile, Powell faces a criminal investigation, which he describes as politically motivated interference with the Fed’s independence.
