Here’s an effect on cryptocurrencies

The US Federal Reserves finally announced their first decision on politics for 2025 after a two -day meeting of the Federal Committee on the Open Market (FOMC). According to a recent press release, the Federal Committee on the Open Market decided to hold interest rates on its current range of 4.25% to 4.5%. This decision follows after the Committee lowered the rates three times consecutively.

Fed stops the reduction of the rate despite Trump’s call

As expected, federal reserve officials decided not to change interest rates after a recent two -day meeting, the first in the second term of President Trump. They brought that election even though President Trump pushed them to lower the footsteps.

At their December meeting, the officials of US federal reserves voted 11 to 1 to reduce the main interest rates by 0.25% on a range of 4.25-4.50%, just as Wall Street predicted. This marked the third consecutive Fed rate in 2024, followed by another 0.25% in November.

The Committee, headed by US Fed Jerome Powell, is now expecting to make only one or two decrease in interest rates in 2025. This decision comes after recent reports have shown that consumer prices in the United States are still something high.

After increasingly increasing the rate of politics by 5.25 percentage points since March 2022, to fight the worst inflation in 40 years, the FED has held a rate since July 2023. This break aims to stabilize high inflation and gradually reduce it to a target range of 2%.

The cryptocurrency market remains stable

The cryptocurrency market remained quite stable because it was already expected to decide to keep interest rates unchanged. Feda Jerome Powell’s chairman mentioned earlier that the Committee did not rush to lower the key reference interest rates and would suit more cautiously with any reduction of the rate.

Coinmarketcap data show that Bitcoin story has done a minor fall in the last minutes. The price of the BTC fell from the top of $ 102.9 thousand to a low $ 101.7 thousand.

The attention of cryptocurrencies will be addressed by the next FOMC meeting of Powell’s comments to a decrease in future rates. Any unexpected movement or surprise is likely to be the key drivers of Bitcoin prices.

President Donald Trump follows his campaign that he will remove the illegal immigrants from the USA, starting flights of deportations during the weekend. Estimates suggest that the total number of deportations could be between one million and 10 million anywhere.

Analysts believe that deportations of high proportions could strengthen the labor market and lead to greater inflation

In addition, Trump threatened to impose 25% of imported tariffs on the goods from Mexico and Canada, which began as early as Saturday. Most economists believe that these actions are more likely to increase inflation rather than help reduce.

Although the president does not control the decisions on the policies of the federal reserves, he and the chairman of Jerome Powell clashed because of politics from Trump’s first term in power. Last week, Trump stated that “he would require an immediate fall in interest rates.”