JEROME POWELL RATE CUT DECISION!
The Federal Reserve, led by Chairman Jerome Powell, has decided to keep interest rates unchanged at 4.25%-4.50%. This decision comes as no surprise, given the current economic uncertainty and inflation risks. Powell emphasized that the Fed will analyze the economy before making any potential rate cuts, with some analysts predicting a 25-basis-point cut in September 2025.
Key Points from the Fed's Decision:
- Interest Rate: The benchmark interest rate remains steady at 4.25%-4.50%.
- Rate Cut Expectations: The Fed still expects two interest rate cuts in 2025, with some analysts predicting the first cut in September.
- Inflation Concerns: Powell noted that inflation in goods prices is expected to accelerate over the summer due to President Trump's tariffs.
- Economic Uncertainty: The Fed has acknowledged that uncertainty about the outlook has diminished but remains elevated .
Impact on the Economy:
- Savings and Mortgages: The pause in rate cuts keeps borrowing costs and deposit payouts near current levels.
- Market Reaction: Traders still price in two quarter-point reductions later this year.
- Economic Growth: Powell signaled patience, indicating that the Fed won't rush the process of cutting interest rates .
Future Outlook:
- Rate Cuts: The Fed will likely cut rates cautiously given persistent inflation pressures.
-Economic Projections: The distribution of outcomes for 2025 shifted hawkishly, according to the Fed's economic projections .#PowellRemarks #CryptoStocks $BTC $USDC