Bitcoin’s Price Holds Steady as Federal Reserve Keeps Rates Unchanged
Bitcoin remains flat at $84,231 after the Fed’s decision to keep interest rates unchanged, with several economists projecting minimal rate cuts in the near future and expressing concerns about GDP growth.
Following the Federal Reserve’s recent monetary policy decision, Bitcoin’s price remains steady at $84,231 on the Bitstamp exchange, reflecting a 1.5% increase. The Fed has maintained the current key interest rate within the range of 4.25-4.50%, aligning with analysts’ predictions, as Polymarket users indicated a 99% chance of a wait-and-see strategy.
In their latest statement, the Federal Reserve acknowledged that “uncertainty around the economic outlook has increased”. Notably, four Fed officials have revised their expectations to no rate cuts in 2025, while the median forecast anticipates a total rate reduction of 50 basis points this year. Furthermore, the central bank has adjusted its 2025 GDP growth projection down to a mere 1.7%.
Economist Mohamed Abdullah El-Erian remarked on social media, “As expected, the Fed left interest rates unchanged and paused QT. Officials increased their inflation forecasts and lowered their growth projections — and both were far from insignificant, with the growth cuts exceeding the inflation rises.” In light of these developments, Diane Swonk, chief economist at KPMG, suggests that the Fed is unlikely to implement rate cuts before early 2026 and views the probability of a rate cut in May as low.
In conclusion, Bitcoin’s stability post-Fed decision reflects broader economic uncertainties, as the central bank maintains interest rates and lowers growth projections. Key insights from economists indicate a cautious outlook, with significant implications for future monetary policy. The Fed’s acknowledgment of increased uncertainty signals a careful approach moving forward, emphasizing the importance of monitoring economic trends closely.
Original Source: u.today
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