Fed Holds Rates Steady Again as Inflation, Jobs Risks Rise — All Eyes on Powell
The Federal Reserve left interest rates unchanged on Wednesday, holding its benchmark fed funds rate at 4.25%–4.50% for the third consecutive meeting, as officials tread carefully amid mounting economic uncertainty.
In its post-meeting statement, the Fed cited rising concerns on both fronts of its dual mandate: price stability and employment.
“Uncertainty about the economic outlook has increased further,” the statement read. “The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.”
The decision was widely anticipated by markets, which are closely watching how the central bank responds to a complex backdrop: sticky inflation, a slowing economy, and the disruptive impact of the Trump administration’s renewed global tariff strategy.
Bitcoin (BTC), which had rallied late Tuesday on optimism around U.S.-China trade talks, slipped back below $97,000 following the announcement, trading at $96,600 shortly after the release.
Despite some expectations for a rate cut as soon as July, Fed officials have signaled caution. Policymakers remain hesitant to move until there’s more clarity on how trade tensions and elevated consumer prices are affecting the broader economy.
Investors now turn their attention to Fed Chair Jerome Powell’s press conference at 2:30 p.m. ET, where his commentary is expected to provide deeper insights into the Fed’s policy trajectory heading into the second half of the year.
