The American Federal Reserve has finally announced its first policy decision before 2025 after two -day Federal Open Market Committee (FOMC) meeting. According to the recent press release, the Federal Open Market Committee decided to maintain interest rates at their current reach of 4.25% to 4.5%. This decision follows after the committee has lowered three times in succession last year.
Fed breaks interest rate letings despite Trump’s call
As expected, officials from the Federal Reserve decided not to change after their recent two -day meeting after their recent two -day meeting, the first under President Trump’s second term. They made this choice, although President Trump forced them to lower the rates.
During their December meeting, American Federal Reserve officials voted 11 to 1 to reduce the most important interest by 0.25% to a range of 4.25-4.50%, just as Wall Street predicted. This marked the third consecutive rate reduction of the FED in 2024 and followed a 0.25% reduction in November.
The committee, led by the US FED chairman Jerome Powell, now expects to make only one or two interest rate letings in 2025. This decision came after recent reports demonstrated that consumer prices are still somewhat high in the United States.
After increasing the policy percentage by 5.25 percentage points since March 2022 to tackle the worst inflation in 40 years, the Fed has kept the rate steadily since July 2023. This break is intended to stabilize high inflation and gradually to reduce the target range of 2%.
Crypto market remains stable
The cryptomarkt remained fairly stable because it already expected the decision to keep the interest rates unchanged. Fed -chairman Jerome Powell said earlier that the committee is not in a hurry to reduce the most important benchmark rental rates and will continue more cautiously with cuts.
Data from Coinmarketcap shows that Bitcoin price has made a small decrease in recent minutes. The BTC price fell from the peak of $ 102.9k to the low point of $ 101.7k.
The attention of the cryptomarkt will focus on the next FOMC meeting and comments from Powell about future rate reductions. All unexpected developments or surprises are likely to be the most important factors of the Bitcoin price action.
President Donald Trump follows his campaign -to remove illegal immigrants from the US and start deportation flights during the weekend. Estimates suggest that the total number of deportations could be between one million and 10 million somewhere.
Analysts believe that large -scale deportations can strengthen the labor market and lead to higher inflation
In addition, Trump has threatened to impose 25% import tariffs on goods from Mexico and Canada from Saturday from Saturday. Most economists believe that these actions increase inflation rather than to help reduce them.
Although the president has no control over the policy decisions of the Federal Reserve, he and FED chairman Jerome Powell are contrary to the policy since Trump’s first term of office. Last week Trump stated that “he would demand an immediate decrease in interest rates.”