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Fed Rate Cut Delay Sparks Market Uncertainty, Crypto Awaits Clarity

Fed Rate Cut Delay Sparks Market Uncertainty, Crypto Awaits Clarity

Published:
2025-05-08 13:49:02
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The Federal Reserve’s prolonged hold on interest rates has cast a shadow over both traditional and crypto markets. ING’s analysis suggests aggressive easing may eventually come, but not before Q4—leaving investors in a holding pattern.

Jerome Powell’s stagflation warnings during Wednesday’s press conference underscored the central bank’s dilemma. His remarks about rising unemployment and inflation risks signal a cautious approach that could delay cuts for several more meetings.

Market participants had hoped for June rate relief, but the Fed’s data-dependent stance now suggests prolonged uncertainty. This wait-and-see posture creates headwinds for risk assets, including cryptocurrencies that typically benefit from looser monetary policy.

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