Fed Holds Interest Rates Steady, Revises Growth and Inflation Projections
The U.S. Federal Reserve maintained benchmark interest rates at 4.25%-4.50% during the June meeting. Key points include:
- Economic activity continues to expand solidly.
- Unemployment remains low, but inflation is elevated.
- Fed's projections indicate a year-end rate of 3.9% by 2025, with expected cuts this year.
- Lower GDP growth forecast for this year at 1.4%, down from 1.7%.
- Higher inflation projections: PCE at 3% and core PCE at 3.1% for this year.
- Unemployment rate projected to rise to 4.5% in 2026.
Bitcoin was stable around $104,200 following the announcement, while S&P 500 and Nasdaq indexes rose. Market attention now shifts to Fed Chair Jerome Powell's remarks for insights on future monetary policy.