Fed Holds Rates Steady Amid Labor Market and Inflation Concerns
The Federal Open market Committee (FOMC) maintained interest rates unchanged, as widely anticipated. Committee members highlighted a "stabilized" unemployment rate and a "solid" labor market, though they flagged rising risks of inflationary pressures and potential setbacks in employment metrics.
Equities showed muted reactions to the announcement, with the S&P 500 edging up 0.2% while the Nasdaq Composite dipped 0.3%. Fed Chair Jerome Powell warned that sustained tariffs could trigger higher inflation, slower growth, and a one-time spike in unemployment—a scenario markets will watch closely for crypto correlations.