🛑 Breaking News: 📉💵 Fed Holds Rates Steady, Eyes Two Cuts in 2025 – What Does It Mean for Crypto? 🤔📈
🔍 On June 18, 2025, the Federal Reserve kept its benchmark interest rate unchanged at 4.25%–4.50%, marking the fourth straight pause. This cautious stance reflects concerns about sticky inflation, slower economic growth, and mounting political pressure—especially from President Trump, who harshly criticized Fed Chair Jerome Powell for not cutting rates more aggressively.
📊 Fresh economic forecasts show that U.S. GDP is now expected to grow just 1.4% in 2025, down from earlier estimates. Core inflation was revised higher to 3.1%, still well above the Fed’s 2% goal, and unemployment is forecasted to climb to 4.5%. Even with these warning signs, the Fed expects to cut interest rates only twice this year by small amounts (0.25 percentage points each). After that, they plan to slow down or pause further cuts in the years ahead.
📉 Markets reacted calmly, with Treasury yields dipping slightly—10-year at 4.37%, 2-year at 3.91%. Powell emphasized that Fed policy will be guided strictly by economic data, not by political pressure or public criticism.
💡 Conclusion: What does it mean for Crypto? 🚀
While the Fed's decision to hold rates and move slowly on cuts may limit short-term gains for crypto, it also lowers the risk of over-tightening—which means the Fed avoids raising rates too much or keeping them too high, which could slow the economy too much.
If inflation and economy start to slow down more than expected, the Fed could speed up rate cuts, potentially boosting interest in Bitcoin, Ethereum, and other digital assets later this year.
