🔴🚨Fed's Rate Decision Impacts Crypto Market Outlook⚡
Following Federal Reserve Chair Jerome Powell's ambiguous remarks during a press conference, investors have lowered their expectations for a September rate cut. The Fed opted to keep interest rates steady at 4.25% to 4.5%, citing ongoing economic uncertainty. Powell noted that rising tariffs are affecting consumer prices and did not dismiss the possibility of maintaining rates in the upcoming Federal Open Market Committee meeting, depending on forthcoming economic data. Bill Adams, chief economist at Comerica Bank, indicated that if unemployment remains stable and tariffs continue to drive inflation, justifying a rate cut could be challenging. Powell's stance contrasts with President Trump's calls for lower rates, as concerns about the trade war's impact on the Fed's inflation target grow. Following the announcement, the likelihood of a September rate cut dropped from 63% to 40%. Although crypto markets experienced a slight dip, they rebounded, with total capitalization around $3.94 trillion, as lower rates typically encourage investment in higher-risk assets like cryptocurrencies.