Fed Keeps Interest Rates Unchanged; Bitcoin Reacts with Price Fluctuations
Today, the Federal Open Marketing Commission (FOMC) finally announced its first monetary policy decision in 2025. Press releaseThe Fed announced that it would keep interest rates in the range of 4.25 % to 4.5 %, which is in line with expectations.
The Federal Reserve Chairman Jerome Powell said the recent policy changes have been appropriate given by the progress of inflation and the progress of the labor market. He added that there is no need to rush to further change the policy. Jerome Powell’s speech emphasized that inflation is still the main focus of the central bank. The latest statement no longer said that inflation has made progress, but pointed out that it “improved.”
Policies stated that the unemployment rate in recent months has stabilized at a low level. In the long run, the goal of the committee is to achieve the largest employment and 2 % inflation. It believes that the risks of these goals are balanced. It also pointed out that the economic prospects are not yet certain, and the committee focuses on the risks of the tasks of both parties.
Bitcoin responded to the Fed’s Hawk movement
The Federal Reserve’s decision may be a drop of risk assets of cryptocurrencies (such as cryptocurrencies). The Fed’s Eagle position may make investors less inclined to invest in such assets. It is worth noting that shortly after the news, the price of Bitcoin BTC fell to $ 101,800. However, the price of Bitcoin rose to $ 103,800, which was the highest since Sunday.
Due to the strong performance of the US economy, the Federal Reserve has reduced interest rates. However, this method seems to conflict with the policy position of the newly elected President Donald Trump.
To delay further slowing down?
It is worth noting that the Federal Reserve has reduced interest rates since the end of 2024, and reduced 50 basis points in September, November and December.
Trump’s tax policy may promote the economy, but his trade tariffs and immigration restrictions may increase inflation and delay further tax rates. As the inflation rate is still very high, the economic conditions are good, and the demand for great reduction is not urgent. The Federal Reserve decision in the future may also depend on the labor market and the upcoming non -agricultural wage data.
Inflation data in January 2025 will be released at 8:30 am on February 12th in the United States, and the market will pay close attention, especially when challenging new AI companies such as Deepseek challenged NVIDIA. Inflation, reducing tax rates and artificial intelligence will become the focus of investors.
