Federal Reserve Holds Interest Rate

The Federal Reserve decided to keep the interest rate at 4.25%-4.50% despite the objection of two members who called for a reduction.

🔹 Impact on Digital Currencies:

✅ Positive in the Short Term:

• The hold means no additional tightening, which alleviates pressure on high-risk assets like digital currencies.

• Markets may interpret the decision as a precursor to a rate cut in the coming months, which is supportive of Bitcoin and Ethereum.

⚠️ But with Caution:

• If Powell's speech comes shortly with a hawkish tone, it may dampen the temporary optimism.