The Federal Reserve System of the United States, following the meeting on January 29, 2025, kept the key interest rate unchanged.
✔️ As I expected, the Fed decided to maintain the key interest rate in the range of 4.25–4.5%.
🔈 Key takeaways from the Fed:
Economy: The GDP of the United States in 2024 is likely to exceed 2%, the economy remains strong.
💸 Labor market: Unemployment is consistently low, the labor market has cooled but remains resilient.
💸 Inflation: Approaching the target level, but still slightly elevated.
💸 Risks: The balance between inflation and the labor market is considered satisfactory.
Jerome Powell emphasized that the Fed's monetary policy is gradually becoming less tight, however, the current rate level remains above neutral. He also noted that the Fed intends to 'patiently wait and observe', assessing the impact of economic and political factors.
🌐 Politics and external risks:
❗️ Powell refused to comment on Donald Trump's words and stated that he has not contacted the president.
❗️ The new administration brings uncertainty to economic forecasts, but the Fed does not yet see reasons for sharp changes in its policy.
❗️ The possible range of new trade tariffs is very wide, but their impact on consumers is still unclear.
💵 The Fed and cryptocurrencies:
Powell commented on the situation in the crypto industry:
✔️ Banks can work with crypto investors if they adhere to risk management.
✔️ It would be beneficial to have a stricter regulatory framework for the cryptocurrency sector.
⭐ Market reactions:
Against the backdrop of the Fed meeting, the stock market reacted with a decline:
🔻 S&P 500: -0.2%
🔻 Nasdaq: -0.3%
🔻 Dow Jones: -0.2%
The cryptocurrency market demonstrated moderate volatility:
💵 Bitcoin (BTC): $100,190 → $104,040 (+2.07%)
💵 Ethereum (ETH): $3,042 → $3,137 (+0.28%)
$BTC $ETH $XRP #BTC #PowellSpeech #FedRateDecisions
#FederalReserve #TrendingTopic
