The Federal Reserve holds rates but warns of persistent inflation

Summary:

The Federal Reserve of the U.S. (FOMC) decided on May 1 to maintain interest rates between 5.25% and 5.50%, as expected. However, Chairman Jerome Powell alerted about the lack of significant progress in 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, putting pressure on risk assets.

The expectation for a first rate cut is now pushed towards the end of 2025.

Highlighted quote:

"We do not see enough progress on inflation to justify a cut at this time." — Jerome Powell, Chairman of the Fed

Recommended hashtags in another post