Bitcoin, Ethereum Waver as Fed Holds Interest Rates Steady
The Federal Reserve kept its benchmark interest rate unchanged at 3.50% to 3.75%, continuing a pause that began in January after previous rate cuts. Policymakers maintained a cautious, data-dependent approach due to ongoing inflation and a cooling job market, with unemployment rising to 4.4% in February. FOMC members remained divided, with two advocating a 25-basis-point rate cut, while most opted to hold rates steady amid uncertainty from rising energy prices linked to Middle East conflicts, notably the U.S.-Israel war with Iran. The Fed’s preferred inflation measure, the Personal Consumption Expenditures Price Index, rose 3.1% year-over-year through January. Bitcoin and Ethereum saw declines in the past day but remained higher over the week, reflecting broader financial market volatility tied to geopolitical events.
