Fed holds interest rates unchanged; Bitcoin responds with price fluctuations

Today, the US Federal Committee for the Open Market (FOMC) has finally announced its first decision on Monetary Policy 2025. a statementFederal reserves have announced that interest rates will maintain a stable in the range of 4.25% to 4.5%, which is in accordance with expectations.

Fed Jerome Powell’s President said recent policy changes in terms of advancement in inflation and labor markets. He added that there was no need to rush to achieve further changes in politics. The speech of Jerome Powell pointed out that inflation is still a major concern for the central bank. The last statement no longer said that inflation had made progress, but instead noted that it remained “a little elevated”.

Politics statement states that the unemployment rate has stabilized at the low level of recent months. The Committee wants to achieve maximum employment and 2% inflation in the long run. He believes that the risks for these goals are balanced. She also noted that economic prospects are uncertain, and the committee is careful at the risks of both sides of its double term.

Bitcoin responds to Fed’s hawk move

The decision of the federal reserves could be tense for risk property such as a cryptocurrency of currency. The Hawkish attitude from the Fed could make investors less prone to investing in such assets. Significantly, the price of Bitcoin BTC reduced to $ 101,800 shortly after the news. However, shortly after, Bitcoin’s price jumped to around $ 103,800, which is the most from Sunday.

The FED signaled slowing down interest rates due to the strong performance of the American economy. However, this approach seems to be clashing with the attitude of the policy of newly elected President Donald Trump.

Further reduction of the rate to be delayed?

Significantly, the Fed began to lower interest rates in late 2024, reducing 50 base points in September and again in November and December.

Trump’s tax policy can increase the economy, but its trade tariffs and immigration limitations could increase inflation and delay further reduction of the rate. Because inflation is still high and the economy is good, the need for significant cuts is less urgent. Future decisions on the FED can also depend on the labor market and the upcoming payment list data.

Inflation information for January 2025 will be announced on February 12 at 8:30 am ET, and the markets will be carefully observation, especially as new AI companies like Deepseek Challenge Nvidia. Inflation, reduction of rates and AI will be a key focus for investors.