The Federal Reserve holds rates, but warns about persistent inflation
Summary:
The Federal Reserve of the U.S. (FOMC) decided on May 1st to maintain interest rates between 5.25% and 5.50%, as expected. However, Chairman Jerome Powell warned about the lack of significant progress on inflation during the first months of the year, which could delay the anticipated rate cuts.
Impact on the crypto market:
$BTC briefly fell below $59,000 after the announcement.
The dollar strengthened, which pressured risk assets.
The expectation for a first rate cut has now shifted to late 2025.
Highlighted quote:
"We do not see sufficient progress on inflation to justify a cut at this time." — Jerome Powell, Chairman of the Fed
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