Claim BonusFOMC: US Federal Reserve Keeps Interest Rates Unchanged
Highlights
- The Federal Reserve has decided to keep rates steady between the 4.25% and 4.5% range.
- This comes despite calls from President Donald Trump for the Fed to lower interest rates.
Following its 2-day FOMC meeting, the US Federal Reserve has decided to keep interest rates unchanged. The Fed is expected to hold off on cutting rates for the most part of this year following three consecutive rate cuts last year.
FOMC: Federal Reserve Keeps Rates Unchanged
In a press release, the Federal Reserve announced that it will keep interest rates steady at the 4.25% to 4.5% range. This decision is in line with expectations, as traders predicted that there was a 99.5% chance the Fed would reach this decision. All twelve members of the Committee voted in favor of keeping rates steady.
This comes despite calls from US President Donald Trump for the Fed to lower rates while reaffirming his commitment to make the US the crypto capital. The Fed’s decision to keep interest rates unchanged is significant for the crypto market, considering how such a move could create a bearish sentiment among investors.
Investors are less likely to invest in risk assets like cryptocurrencies in such situations, especially if the Fed is hawkish. Now, all eyes will be on the Federal Reserve Chair Jerome Powell’s speech to determine where the US Central Bank stands regarding its outlook on the economy.
The crypto market could witness a significant rebound if Powell projects a dovish stance from the Fed in his speech. However, the Bitcoin price risks another decline if the Fed Chair projects a hawkish stance.
Some Notables Following The FOMC Meeting
One notable change from the latest FOMC statement is the Federal Reserve dropping the reference to inflation, making progress to their desired target of 2%. This indicates the Fed may take a hawkish stance going forward if they indeed believe inflation is again on the rise. The December US CPI report had already raised concerns of rising inflationary pressure in the country.
Meanwhile, following the Fed’s decision, traders now expect that the Committee will wait until June to cut rates. In line with this, interest rates are likely to remain steady following the March and May FOMC meetings.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Tether At Center Stage in US Venezuela Conflict As 80% Oil Revenue Stays in Stablecoin
- Crypto Gains 500M-User Gateway as X Teases Roll Out of Smart Cashtags for Real-Time Price Tracking
- Michael Saylor Posts “Big Orange” — Is Another Massive BTC Purchase Coming Tomorrow?
- Vitalik Buterin: USD Pegs, Capturable Oracles, and Staking Yield Are Killing True Decentralized Stablecoins
- Will Bipartisan Votes Pass the CLARITY Act on January 15 As Key Lawmaker Buys Bitcoin
- Binance Coin Price Target $1,000 as CZ Signals Incoming Crypto Super Cycle
- Bitcoin and XRP Price Prediction Ahead of Supreme Court Tariffs Ruling on Jan 14, 2026
- Crypto Price Prediction Ahead of US CPI Inflation Data- ETH, ADA, Pi Coin
- XRP Price Outlook Ahead of Jan 15 CLARITY Act Vote
- Bitcoin Price Prediction: Digital Gold in Focus Amid US Strategic Crypto Reserve Talks
- Pi Network Price Prediction Ahead of 2026 First Upgrade
