The post Federal Reserve Holds Rates Steady, Uncertainty Remains Over Future Cuts appeared on BitcoinEthereumNews.com.

Bitcoin dropped 2% to $65,122, following the Fed’s latest monetary policy meeting, rate cuts are still expected eventually, but uncertainty is growing. Bitcoin dropped 2% to $65,122, ahead of the monthly close following the Fed’s latest monetary policy meeting. The U.S. Federal Reserve opted to maintain its benchmark fed funds rate at the range of 5.25%-5.50%, aligning with market expectations. However, the Fed provided little indication that a rate cut in September is forthcoming. Chairman Jerome Powell said, “Inflation has eased over the past year but remains somewhat elevated. The economic outlook is uncertain, and the FOMC is attentive to the risks to both sides of its dual mandate.” Before today’s decision, the market, as per CME FedWatch, had fully priced in a minimum of 25 basis points of rate cuts by the mid-September meeting, with a nearly 60% chance of a cumulative 75 basis points reduction by the end of 2024. Inflation Is Dropping Fed Chair Jerome Powell, in his post-meeting press conference, acknowledged recent data suggesting that inflation is trending towards the 2% target, offering some optimism. However, he emphasized that no concrete decisions regarding rate adjustments in September have been made, though he noted, “the broad sense is that we’re moving closer” to a possible reduction. This more hawkish stance than anticipated led to a slight increase in bond yields and the dollar, though both metrics closed lower for the day. Meanwhile, Bitcoin’s price dipped sharplyy to $65,550, while U.S. stocks saw robust gains, with the Nasdaq climbing 2.4% and the S&P 500 up 1.6%. The Federal Reserve embarked on an aggressive tightening cycle in early 2022, elevating the fed funds rate from 0% to its current level within less than eighteen months amid surging inflation. The rate has been held steady for over a year as…

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Filed under: News - @ August 1, 2024 2:10 am