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Jerome Powell Speech: Fed Holds Rates Steady Amid Inflation Concerns

The Federal Reserve has decided to keep interest rates unchanged at 4.25%–4.50%, citing inflation concerns and stable unemployment. During the latest FOMC meeting, Fed Chair Jerome Powell reaffirmed a data-driven approach, signaling that rate cuts are not imminent.

Fed Maintains Caution on Rate Cuts

During his speech, Powell stressed that inflation must improve before any policy changes occur. However, he also clarified that the Fed doesn’t need inflation to hit exactly 2% before considering rate cuts.

“With the economy remaining strong, we don’t have to rush to change policy direction,” Powell stated.

The decision follows three rate cuts in late 2024 and reflects the Fed’s cautious stance amid ongoing economic stability.

Stable Labor Market Supports Fed’s Decision

Powell highlighted the steady unemployment rate, which has remained stable for the past six months. He noted that strong employment figures continue to support the economy, despite persistent inflation concerns.

According to the Fed’s policy statement, hiring remains steady, reinforcing confidence in the labor market.

Trump Criticizes Powell Over Inflation

Following Powell’s speech, Donald Trump criticized the Federal Reserve, blaming its policies for high inflation.

Trump has repeatedly urged the Fed to cut rates, arguing that high borrowing costs hurt businesses and individuals. Powell, however, dismissed political influence, reiterating that the Fed remains focused on economic data.

“We will continue to focus on our work and achieve our goals,” Powell responded.

Fed’s Stance on Crypto and Banking

Powell also addressed cryptocurrency regulation, emphasizing that banks can manage crypto-related risks.

Following the Fed’s decision, Bitcoin initially dropped 1.2%, while the total crypto market cap fell 2.6%. However, Bitcoin quickly rebounded, surging 4.5% to $104,783.

What’s Next for Interest Rates?

With inflation still above 2%, most experts believe the Fed will maintain current rates until at least March. The FOMC will continue monitoring key economic indicators before making further policy decisions.

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Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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