Fed Holds Rates Steady, Bitcoin Steadies Around $65,300
The Federal Reserve kept its benchmark interest rate unchanged at 3.5%-3.75% for the fourth time this year, citing elevated uncertainty from Middle East geopolitical tensions and supply shocks. The decision was widely expected, but the quarterly projections indicated no rate cuts are planned, with the year-end median forecast rising to 3.8% from 3.4% in March. Bitcoin traded around $65,300, dipping slightly after the announcement but still up 5% over the past week. Ethereum rose 7.6% to $1,763, and Solana gained 13% to $73 over the last seven days. Fed Chair Kevin Warsh, in his first decision, emphasized the committee's unanimous focus on price stability and announced five new task forces addressing communications, balance sheet, data sources, emerging technologies, and inflation framework. The move has increased expectations of a rate hike in July, with traders seeing an 18% chance according to CME FedWatch.
Key facts
- Fed holds rates at 3.5%-3.75%, fourth consecutive pause.
- Bitcoin steadies near $65,300, up 5% over past week.
- Ethereum (+7.6%) and Solana (+13%) rally over 7 days.
- Fed Chair Warsh announces five new task forces.
- Year-end rate forecast raised to 3.8%, signaling no cuts.