Fed Holds Interest Rates Steady Amid Economic Uncertainty
In a widely anticipated move, the Federal Reserve decided to maintain interest rates at their current level during Wednesday's meeting of the Federal Open Market Committee, marking the sixth consecutive pause in rate hikes since March 2022.
The decision to hold rates was influenced by persistent inflation and a robust labor market, according to statements from central bankers. They emphasized the need to carefully evaluate incoming data and the evolving economic outlook before considering any adjustments to the federal funds rate target range.
Federal Reserve Chairman Jerome Powell reiterated during a press conference that central bankers would require further evidence of inflation easing before considering rate cuts, acknowledging the uncertain path forward.
While short-term inflation expectations have seen some increases recently, longer-term inflation expectations appear stable, as indicated by various surveys and market measures, Powell noted.
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Bitcoin’s price has stayed below $60,000 since early Wednesday, with analysts predicting a continued downward trend. According to Mike Tauckus, head of trading and structuring at BitOoda, a breakthrough below $59,200 could trigger further selling pressure, potentially testing the $53,000 support level.
Market expectations suggest a minimal chance of a rate cut in June, with CME Group data indicating about a 9% probability.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
