Bitcoin Holds Steady as Fed Keeps Rates Unchanged
Bitcoin didn’t move much on Wednesday, sticking close to $104,200 after the Federal Reserve decided—no surprise here—to leave interest rates right where they’ve been. The target range stays at 4.25% to 4.50%, same as it’s been for a while now.
Policymakers did hint that two rate cuts could still happen this year, but they didn’t sound in any hurry. Inflation’s been creeping up, partly because of tariffs, and that’s got them playing it safe. They’d rather wait and see how things shake out before making any big moves.
What the Fed’s Projections Say
The Fed’s latest economic outlook, including that dot plot thing they do every few months, suggests rates could drop to around 3.9% by the end of 2025. That’d mean two small cuts this year—maybe. But after that, things slow down. The forecast for 2026 is 3.6%, then 3.4% in 2027. Not exactly a free fall.
Jerome Powell, the Fed chair, made it clear they’re not thinking about hiking rates anytime soon. But he also didn’t sound like someone about to rush into cuts. “We’ll make a smarter decision if we wait a couple of months,” he said, basically admitting they’re not entirely sure how tariffs will mess with inflation.
He also pointed out that the job market isn’t screaming for lower rates. Unemployment’s still low, wages aren’t collapsing—so why rush?
Inflation and Growth: Not Exactly Rosy
The Fed’s numbers didn’t paint the prettiest picture. They’re now expecting higher inflation than they thought back in March—3% for PCE and 3.1% for core PCE in 2025. Not terrible, but not great either.
Growth’s looking weaker too. GDP projections got trimmed to 1.4%, and unemployment is expected to climb to 4.5% this year. It might stay up there through 2026, which isn’t exactly what anyone wants to hear.
Markets Shrug It Off
Bitcoin barely budged after the announcement. Stocks, though, edged higher. Maybe investors were just relieved the Fed didn’t say anything too shocking. Or maybe they’ve stopped expecting much from these meetings altogether.
For now, it seems like everyone’s stuck waiting—the Fed, traders, even regular folks just hoping for lower borrowing costs. The next few months could bring more clarity. Or, knowing how these things go, they might just bring more confusion.
