Fed Keeps Benchmark Rate Steady at 4.25%-4.50% Amid Economic Uncertainty

The U.S. Federal Reserve maintained its benchmark fed funds rate at 4.25%-4.50%, marking the third consecutive meeting without changes.

The Fed noted increased uncertainty regarding the economic outlook, highlighting rising risks of higher unemployment and inflation.

Key points include:

Bitcoin traded at $96,600 following the Fed's announcement, after falling below $97,000 earlier.
Inflation remains above the 2% target amidst ongoing global tariff implications.
Market expectations indicate three potential rate cuts this year, with July as the likely first meeting for a reduction.
Fed officials emphasize the need for clarity on tariff impacts before making policy shifts.

Attention is now on Fed Chair Powell’s remarks scheduled for 2:30 pm ET, which may provide insights into future monetary policy.