Here’s the Impact on Crypto
After the two -day Federal Open Market Committee (FOMC) meeting, the United States Federal Reserve finally announced its first policy decision in 2025. According to the recent press release, the Federal Public Marketing Committee decided to keep interest rates at 4.25 % to 4.5 %. After the committee decreased the interest rate three times last year.
Although Trump called
As expected, Fed officials decided not to change interest rates after the recent two -day meeting, which is the first term of President Trump’s second term. Even if President Trump has been promoting them to reduce interest rates, they have made choices.
As Wall Street predicted, at the December meeting, US Fed officials voted at 11-1, reducing the main interest rate by 0.25 % to a range of 4.25-4.50 %. This marks the third consecutive decrease rate in the Federal Reserve in 2024, and then reduced by 0.25 % in November.
The Commission led by the United States Chairman Jerome Powell is now expected to reduce only one or two interest rates in 2025. The decision was in recent reports that the price of consumers in the United States is still a bit high in the United States.
Since March 2022, the policy interest rate has increased by 5.25 percentage points to cope with the worst inflation in 40 years. The Fed has remained stable since July 2023. This stop is to stabilize high inflation and gradually reduce it to a target range of 2 %.
The encryption market remains stable
The cryptocurrency market has remained very stable because it has expected to decide to keep interest rates unchanged. The Federal Reserve Chairman Jerome Powell has previously mentioned that the committee has not eager to reduce the benchmark interest rate and will be more cautious with any reduction rate.
Data from CoinMarketcap shows that the price of Bitcoin has declined slightly in recent minutes. The price of BTC decreased from a peak of $ 102.9K to a low price of $ 101.7K.
The attention of the encrypted market will turn to the next FOMC meeting and publish Powell’s comment on price reductions in the future. Any unexpected development or surprise may be the key driving force for Bitcoin price action.
President of Donald Trump is observing his campaign commitment to evacuate illegal immigrants in the United States and start deportation on the weekend. It is estimated that the total number of deportation may be between 1 million and 10 million.
Analysts believe that large -scale deportation can strengthen the labor market and lead to higher inflation
In addition, Trump also threatened to impose 25 % import tariffs on goods in Mexico and Canada from Saturday. Most economists believe that these actions are more likely to increase inflation rather than help reduce inflation.
Although the President could not control the Fed’s policy decision, he and the Fed Chairman Jerome Powell had conflicted with the policy since Trump’s term. Just last week, Trump stated that he would “require interest rates immediately.”
