Fed Holds Rates Steady — What It Means for $BTC and the Economy
On May 7, the Federal Reserve decided to keep interest rates unchanged, even as inflation stays high and concerns about a possible recession grow. While job growth looks strong, the Fed is staying cautious because of global trade uncertainties. They didn’t promise any rate cuts for 2025, but markets are still hoping for a cut by July—if inflation starts to cool down.
The Fed is staying “data-dependent,” meaning they’ll make decisions based on how the economy performs. They’re trying to strike a balance between fighting inflation and not putting too much pressure on the job market.
But here’s the big question: if there’s a real risk of recession, does it make sense to keep interest rates this high (around 4.5%)?
Your thoughts?
