Here is the latest update from the FOMC (Federal Open Market Committee) meeting on June 17ā18, 2025:
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š¦ Interest Rate Policy & Projections
Interest rates remain at 4.25%ā4.50%, for the fourth consecutive meeting.
The FOMC projects the possibility of two rate cuts remaining in 2025, although internal consensus is beginning to waneā7 out of 19 members now signal no cuts.
Economic projections have been revised downwards:
Growth (GDP): down to ~1.4% for 2025.
Inflation (PCE/Core): slightly down but still above target, around **3%**.
Unemployment rate: expected to rise to **4.5%**.
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š¤ Statement from Jerome Powell & Sentiment
Powell emphasized concerns over inflation due to tariff policiesāslowly āburdening consumers.ā
He stated a commitment to independence and data-based decisions, despite facing strong pressure from President Trump to cut rates.
Stagflation risks (slow growth + high inflation) received attention, reflecting concerns about the US economy.
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š Market Reaction & Implications
Market reaction was limited: stocks, bond yields, and the US dollar moved flat.
In the crypto realm, reactions tended to be cautious:
Participants highlighted the dot plotāhow many cuts will occur; if only one or none, then the āhigher-for-longerā narrative returns to dominance, which could pressure Bitcoin prices.
Illustration: BTC briefly dropped due to uncertainty over future interest rates.
#JeromePowell