Markets paused as Powell spoke, but Bitcoin still pushed past $98K. With interest rates steady and inflation risks rising due to tariffs, crypto is gaining attention—with Trump’s pro-crypto stance. Here’s what happened at the FOMC meeting.

At the May 6–7 FOMC meeting, the Fed held interest rates steady at 4.25%–4.5%, with Powell calling the stance “moderately restrictive” and data-dependent. He flagged inflation and unemployment risks, largely from President Trump’s aggressive 145% tariffs on Chinese goods, which could delay the Fed’s goals by a year. Trump, meanwhile, pushed for immediate rate cuts, calling inflation “virtually gone,” but Powell dismissed any influence, emphasizing the Fed’s independence. The FOMC statement acknowledged rising risks but gave no timeline for rate cuts. The next policy meetings are set for June 17–18 and July 29–30, with July now carrying 80% odds of a cut.

Bitcoin jumped to $98,000 after the decision, gaining 2–3%, buoyed by Trump’s pro-crypto stance and ETF inflows like BlackRock’s $7B Bitcoin ETF. #Ethereum ( $ETH )– Solana ( $SOL ), and #Litecoin ( $LTC ) also saw modest gains, though some speculative tokens faced selling pressure. Market sentiment on X turned “aggressively positive,” with BTC’s breakout above $96K seen as confirmation of strength. Still, Powell’s neutral tone on crypto—urging regulatory frameworks but offering no endorsement—tempered excessive bullishness. Analysts pointed to $95K support and $100K resistance as key technical levels.

Outside crypto, stocks rallied slightly, gold dropped 2%, and Treasury yields rose, reflecting inflation concerns. The broader picture remains volatile, but crypto continues to decouple, with investors positioning #BTC as a tariff-proof, institutional-backed inflation hedge. The mixed signals—hawkish inflation risk vs. Trump-era crypto optimism—make July’s #FOMC‬⁩ outcome one to watch.