Main to remember
- Bitcoin was held stable at $ 104,000, the federal reserve, interest rates maintained 4.25% to 4.50%.
- The Fed projects two rate drops in 2025, with a gradual relaxation at 3.4% by 2027.
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Bitcoin oscillated on Wednesday about $ 104,200 after the federal reserve has left its unchanged reference interest rate from 4.25% to 4.50%, in accordance with expectations.
While political decision -makers are still projecting two rate drops this year, they have taken a cautious tone, citing increasing inflation linked to prices as a reason to delay action.
Economic projections updated by the Fed, including its Tribed Dot terrain, have shown that those responsible expect the reference rate to fall to 3.9% by the end of 2025, which implies 50 duty reduction points this year. However, the pace of softening beyond is slower than previously expected, with rates observed at 3.6% in 2026 and 3.4% in 2027.
During his press conference after the meeting, President Jerome Powell excluded hikes as the basic affair, but underlined the need to wait more clarity.
“We will make a smarter decision if we are waiting for a few months,” he said, pointing to the quantity of prices will affect inflation. He added that “the labor market does not shout for a drop in rate” and that current conditions allow the Fed to remain patient.
Other projections have shown higher inflation expectations compared to March. The Fed now sees the inflation of the PCE at 3% and the basic PCE at 3.1% for 2025. GDP growth was revised at 1.4%, while the unemployment rate should reach 4.5% this year and remain high until 2026.
Bitcoin has changed little after the announcement, while the US stock markets increased.
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