#BTCBreaks99K Cryptocurrency approached $100,000 against the backdrop of another Federal Reserve decision on the key rate. Following the meeting on May 7, 2025, the regulator decided to keep the base rate in the range of 4.25%–4.5%, where it has remained since December of last year.☝🏻Main reasons for this decision:

✔️Increased uncertainty — the statement notes heightened volatility in the markets and ambiguity regarding further economic development.

✔️Risk of stagflation — tariff policies and potential trade 'hits' may simultaneously slow GDP growth and increase inflation, creating a risk of rising unemployment and price pressure.

✔️Expectation of the effects of trade negotiations — the Federal Reserve prefers to ascertain how exactly new tariffs and negotiations with major trading partners will impact the market before changing the direction of monetary policy.

✔️Balance of the 'dual mandate' — central bank leaders emphasized that risks to both employment and price stability have currently increased, and therefore, a premature rate cut would be imprudent.