The post Bitcoin Spikes as Fed Skips Rate Cut—No ‘Hurry’ Despite Trump Demand appeared on BitcoinEthereumNews.com.

The Federal Reserve left its benchmark interest rate unchanged Wednesday, hitting the pause button on its easing campaign after delivering three interest rate cuts in a row. And Bitcoin appeared to fall sharply at first before spiking to a three-day high. The decision, which was widely expected among Fed futures traders, kept the federal funds rate at a target range of 4.25% to 4.50%. When the Fed began easing monetary policy in September, its benchmark interest was a full percentage point higher, hovering at a 23-year high. “That recalibration or policy stance was appropriate in light of the progress on inflation and the rebalancing in the labor market,” Fed Chair Jerome Powell said. “We do not need to be in a hurry to adjust our policy stance.” When the Fed started lowering interest rates—a move that typically bodes well for risk assets like stocks and crypto—the U.S. central bank signaled that supporting the labor market through lowering borrowing costs had become a bigger priority than subduing cooling inflation. At its December meeting, however, policymakers adopted a relatively cautious outlook. Amid signs of strength in the U.S. economy, the Fed signaled that the upside risks to its inflation outlook had increased—alongside a newly-elected wild card in the White House. Under President Donald Trump, policymakers feared that bringing inflation down to its 2% goal could become more challenging, citing potential shifts in immigration and trade policy. Since then, Trump’s administration has weighed a gradual approach to so-called universal tariffs, according to media reports. At the Fed’s December meeting, policymakers foresaw just two quarter-percentage-point rate cuts this year, down from the four that they had projected in September. On Wednesday, the U.S. central bank did not release new economic or monetary policy projections, and the Fed said the “economic outlook is uncertain” in…

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Filed under: News - @ January 30, 2025 1:25 am