#FedHODL

"FedHODL" is a term that combines "Federal Reserve" (Fed) and "HODL". HODL is a popular term in the cryptocurrency community, derived from the misspelling "HOLD", which means holding cryptocurrencies for a long time without selling them, regardless of market fluctuations.

On January 30, 2025, the Federal Reserve (Fed) decided to keep interest rates the same instead of lowering them. The current interest rate remains between 4.25% and 4.50%. The Fed made this decision because inflation (the rise in prices of goods and services) is still higher than they want. In December 2024, inflation was at 2.9%, up from 2.4% in September 2024.

The Fed’s goal is to keep the #economy stable by controlling inflation. If inflation is too high, the Fed raises interest rates to slow down borrowing and spending. If inflation is too low, the Fed lowers rates to encourage borrowing and investment. Right now, inflation is still a concern, so the Fed chose to wait before cutting rates.