Fed Maintains Rates Amid Economic Crosscurrents

The Federal Reserve held interest rates steady at 4.25%-4.50% for the seventh consecutive meeting, maintaining its hawkish stance despite emerging labor market softness. Initial jobless claims dipped to 245,000 last week, matching forecasts but hovering NEAR eight-month highs. Continuing claims barely budged at 1.945 million, signaling persistent difficulty for displaced workers.

Market participants parsed the data with unusual intensity—the survey period overlapped with June's nonfarm payroll collection window. The four-week moving average for new claims climbed to 245,500, the highest since August 2023, confirming a two-month deterioration trend. Seasonal volatility around holidays failed to fully explain the weakening.

Housing sector stagnation compounded the economic uncertainty as monetary policymakers weighed the impact of recent trade measures. No cryptocurrency assets or exchanges featured prominently in the macroeconomic narrative, though digital asset markets typically exhibit heightened sensitivity to Fed liquidity decisions.