The Federal Reserve kept interest rates unchanged at Wednesday's meeting and indicated it would still likely lower rates twice this year. However, Powell stated that tariff-driven economic uncertainty and inflation risks continue to complicate the central bank's efforts to ease policy. The three major U.S. stock indices oscillated around flat, while Bitcoin and Ethereum also consolidated in a narrow range, but ETFs continued to show net inflows.
The Federal Reserve remains on hold, possibly lowering interest rates by two basis points in 2025.
The Federal Reserve kept interest rates unchanged at Wednesday's meeting, maintaining the federal funds rate in the range of 4.25% to 4.5%.
According to the newly released interest rate dot plot, although the median expectation for two rate cuts in 2025 remains unchanged, some officials have lowered their forecasts. Currently, seven officials expect there will be no rate cuts this year, whereas only four did in March, and two officials expect one rate cut this year. Officials also downgraded the U.S. economic growth rate for 2025 from 1.7% to 1.4%, and raised the median inflation expectation for the end of 2025 from 2.7% to 3%. The year-end unemployment rate is projected to be 4.5%, slightly higher than previous estimates.
Powell: Tariffs will ultimately drive up prices.
After making this decision, Federal Reserve Chairman Powell told reporters that the central bank should 'first understand the potential direction of the economy before considering adjustments to our policy stance.'
Powell noted that an increase in tariffs could raise prices, and the impact on inflation may be more persistent.
Ultimately, the cost of tariffs must be borne by consumers, and we just want to observe a bit before making any premature judgments.
Bitcoin and Ethereum are consolidating in a narrow range, with continued net inflows into ETFs.
The top ten cryptocurrencies by market capitalization are almost consolidating in a narrow range. Bitcoin reached a high of about $105,500 yesterday and fell to $103,700 early this morning, showing very limited volatility. However, Bitcoin ETFs have seen continuous net inflows for seven consecutive days since June 9, indicating that retail investors are still adding positions. Currently, the total assets of Bitcoin spot ETFs in the U.S. have reached $128.1 billion, accounting for 6.18% of Bitcoin's market capitalization.
Since May 16, Ethereum ETFs have also seen continuous inflows, with only a slight net outflow in one day. Currently, the total assets of Ethereum spot ETFs in the U.S. have reached $10.05 billion, accounting for 3.32% of ETH's market capitalization.
This article, Federal Reserve Keeps Rates Unchanged, Bitcoin and Ethereum Consolidate in a Narrow Range, with Continuous Inflows into ETFs, first appeared on Chain News ABMedia.
