Federal Reserve Holds Rates Steady Amid Inflation and Tariff Concerns

The Federal Reserve maintained its key interest rate unchanged, as anticipated, keeping the fed funds rate within the 4.25% to 4.5% range. The decision reflects the central bank's ongoing battle against inflation, which remains above the 2% target. Fed Chair Jerome Powell and policymakers are wary of potential price pressures from President Trump's tariffs, which could exacerbate inflationary trends.

Two dissenting voices, Governors Michelle Bowman and Christopher Waller, advocated for a 0.25 percentage point cut. The Fed's stance defies mounting pressure from the White House, where TRUMP has repeatedly criticized Powell and pushed for lower rates to reduce federal debt servicing costs. Markets had largely priced in the hold, with no immediate reaction across major cryptocurrencies.