Fed Holds Rates Steady at 4.25%-4.50%—What It Means for Your Crypto Portfolio

The Federal Reserve just hit pause—again. Rates remain frozen between 4.25% and 4.50%, signaling caution as traditional finance limps forward. Here’s why crypto traders are grinning.

Stagnant Rates, Volatile Markets

While TradFi plays it safe, Bitcoin’s already pricing in the next move. No cuts? No problem. Decentralized finance doesn’t wait for Powell’s memos.

The Institutional Dilemma

Banks are stuck earning 4.5% on treasuries while Ethereum staking yields double that. Guess where the smart money’s sneaking off to?

Cynical Take

Wall Street’s ‘risk-free’ rate looks riskier every day—unless you think inflation magically stopped at 3%. Meanwhile, crypto’s hard cap assets are laughing all the way to the blockchain.

Confident Investing Starts Here:

• Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
• Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter

Earlier today, President TRUMP urged the Federal Reserve to lower rates in order to reduce U.S. government interest payments on debt, saying “I’d do a much better job than these people. So anyway, we should be two points lower. It’d be nice to be two and a half points lower.”

Fed Raises Inflation Estimate, Lowers GDP Estimate

In its Federal Open Market Committee (FOMC) statement, the Fed noted that economic uncertainty has decreased but remains present. It also said that the labor market remains solid while the unemployment rate continues to be low.

However, the Fed lowered its 2025 gross domestic product (GDP) estimate to 1.4% from 1.7% in March. It raised its personal consumption expenditures (PCE) inflation estimate to 3.0% from 2.7%. The estimate for Core PCE, the Fed’s preferred inflation gauge, was raised to 3.1% from 2.8%. Core PCE excludes volatile food and energy prices from the PCE.

Keep track of the federal funds rate and other key economic metrics with TipRanks’ Economic Indicators Dashboard.