Federal Reserve Chair Jerome Powell recently reiterated the Fed’s independent, data-driven stance, keeping interest rates steady at 4.25%–4.50% on June 18, 2025. While the Fed held rates unchanged for the fourth consecutive meeting, their updated Summary of Economic Projections signaled two quarter-point rate cuts expected by year-end, though seven of 19 officials now see no cuts in 2025 . Growth forecasts were revised lower—GDP now projected at 1.4%, inflation forecast raised to around 3.0%, and unemployment expected to reach 4.5% . Powell stressed persistent uncertainty—from tariffs, geopolitical tensions, and commodity prices—and emphasized that the Fed will remain cautious, with any future easing fully data-dependent .
Regarding cryptocurrency, Powell made a clear distinction: the Fed has no legal permission to hold Bitcoin, nor plans to pursue congressional approval to do so. His comments highlight that while the Fed isn’t against crypto, any institutional adoption would require explicit legislative change
Why it matters:
Financial markets are watching closely—bond yields and stocks reacted moderately as investors balance inflation risks with eventual rate cuts.
Crypto investors should note: while broader monetary easing might support risk assets, Powell’s comments reinforce that such support won’t come from the Fed buying crypto directly.
