No change at the Fed. The US Federal Reserve (Fed) announced that it left its unchanged key rate between 4.25% and 4.50%. This decision was largely anticipated by analysts, given the persistent uncertainties on inflation and prudence displayed by the Fed in recent months. The president of the Fed, Jerome Powell, reaffirmed that the central bank would remain «dependent on the data» for its next decisions.
The key points of this article:
The Fed left its key rate unchanged, between 4.25% and 4.50%, in a context of persistent economic uncertainties.
Bitcoin has dropped slightly after the announcement, while Ethereum experienced a slight increase, showing resilience to global economic tensions.
The Fed leaves its key rate unchanged
The Bitcoin slightly dropped after the Fed's announcement, trading around 117 777 dollarsdown 0.1 % in the last hour. Ethereumon the other hand, increased by 0.4 %, trading in 3 809 dollars. Two Fed governors, Christopher Waller et Michelle Bowmanexpressed their disagreement with the decision to maintain rates, preferring a drop of 0.25 points. They stressed that inflation remains stubbornly high, partly because of the customs prices imposed by President Trump. The latest report on the Consumer Price Index (ICC) showed an annual inflation of 2.7 %, well above the 2 % target of the Fed. These figures have reinforced the expectations of a drop in rates later in the year, but the Fed remains cautious.
« Although fluctuations in net exports continue to affect data, recent indicators suggest that the growth in economic activity has moderate in the first half of the year. The unemployment rate remains low and occupational market conditions remain solid. Inflation remains somewhat high.
The Committee seeks to reach a maximum rate of employment and inflation of 2 % in the long term. Uncertainty about economic prospects remains high. The committee is attentive to the risks represented for both parties its double mandate.
To support its objectives, the Committee decided to maintain the target range of the rate of federal funds between 4-1/4 and 4-1/2 percent. ”
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Bitcoin remains stable despite economic tensions
Cryptos markets have remained relatively stable despite global economic tensions. Investors closely monitor Trump's trade wars and their effects on the world economy. Joe Dipasquale, CEO of Bitbull Capital, told Decrypt that «the market had already largely taken into account rates by the Fed this month». He added that «the real issue will be Powell's tone and any change in the point graph». The point graph, or «dot plot», is a tool used by the Fed to indicate its interest rate forecasts. If Powell signals a confidence in the drop in inflationthis could trigger a rally of risky assets, including cryptocurrencies. The Fed's decision to maintain unchanged rates reflects a cautious approach to a global economy prey to trade tensions and persistent inflation. Cryptocurrencies, although sensitive to monetary policies, have shown a certain resilience, remaining stable despite economic uncertainties. Investors continue to closely monitor Fed declarations and geopolitical developments to adjust their strategies.