Fed Keeps Interest Rates Steady, Concerned About Rising Inflation and Unemployment Risks

As most analysts predicted, the Federal Reserve of America (Fed) decided to stay tuned the federal funds rate (fed funds rate) at 4.25% - 4.50% in the meeting on Wednesday, marking the third consecutive time this agency has maintained a "pause" stance on massive monetary easing. In a statement following the meeting, the Fed said: "Uncertainty about the economic outlook has increased." The agency emphasized that the Federal Open Market Committee (FOMC) is paying close attention to the risks from both dual objectives of controlling inflation and ensuring maximum employment. "The risks of rising unemployment and runaway inflation are both present," the Fed warned. In the context of global economic instability, especially as the Trump administration is implementing a series of tariff policies against major trading partners like China, financial markets and policymakers are facing many challenges. Although the economy of America continues to grow, signs of a slowdown have begun to appear, while inflation remains persistently above 2% – the target set by the Fed. The impact of the Fed's decision quickly spread to financial markets. The price of Bitcoin (BTC) – the largest cryptocurrency in the world – fell back below the $97,000 threshold during the day, after benefiting from a price surge late on Tuesday due to expectations surrounding US-China trade negotiations. At the time immediately following the Fed's announcement, BTC was trading around $96,600. Although the Fed is holding interest rates steady at this time, the market is still expecting three rate cuts this year, with the meeting in July seen as the potential first timeframe for this move. However, Fed members remain cautious and emphasize that they need more time to gain a clearer assessment of the impact of current tariff policies on the economy before making a policy adjustment. The next focal point of the market is the speech by Fed Chair – Jerome Powell – scheduled to take place at 2:30 PM Eastern Time in America (, which is 6:30 PM UTC). Investors and analysts expect this speech to provide further clues about the direction of the Fed's monetary policy in the near future.