The Federal Reserve kept interest rates unchanged at 4.25%–4.5% following its May policy meeting, signaling caution amid rising economic uncertainty fueled by President Trump’s recent tariffs.
Fed Chair Jerome Powell emphasized that the central bank is “not in a hurry” to cut rates preemptively, noting inflation remains above target and the full economic impact of tariffs is still unclear. “It’s not a situation where we can be preemptive,” Powell said, reinforcing a data-dependent stance.
With the dual mandate of full employment and stable prices under pressure, the Fed warned that risks of both higher inflation and higher unemployment have increased. Powell noted the latest tariffs were “substantially larger than anticipated” and could delay the Fed’s progress on its goals into 2026 if sustained.
Despite political pressure, Powell maintained the Fed’s independence. “We are always going to consider only the economic data,” he said, dismissing President Trump’s calls for immediate rate cuts.
For now, the Fed appears to be in wait-and-see mode. With upcoming trade talks and market responses still evolving, Powell said, “We’re in a good position to observe.” Markets reacted cautiously, with the S&P 500 and Nasdaq dipping post-announcement.
The message: monetary policy remains on hold, but the path forward hinges on how trade tensions unfold.
Impact on $BTC seems less influencing than before. The crypto market seems more mature than ever before and maintaining the global asset status.
#fomc #Fed
