The US Federal Reserve has opted to keep its benchmark interest rate steady at 4.25%-4.5% during its latest policy meeting, citing persistent inflation pressures and economic uncertainty as primary factors. This unanimous decision reflects concerns over moderated economic growth and inflation rates continuing to exceed the central bank’s 2% target.
Internal divisions surfaced during the vote, with two Federal Reserve governors dissenting in favor of a 25 basis point reduction. The official statement notably revised its characterization of economic conditions, replacing language about diminished uncertainty with acknowledgment that ‘uncertainness remains elevated.’
Market indicators now suggest a 68% probability of rate cuts occurring in September, followed by a 65% likelihood of additional reductions in December. These expectations signal growing anticipation of monetary policy easing later this year.
Bitcoin exhibited stable trading patterns following the announcement, maintaining a consistent price near $117,650. The cryptocurrency’s muted volatility indicates cautious investor sentiment amid the central bank’s economic outlook.