Powell Holds Rates Steady Amid Strong Economy; Bitcoin Surges Above $100K

The Federal Reserve, led by Chair Jerome Powell, has maintained its benchmark interest rate range at 4.25% to 4.5%, signaling a cautious approach to further rate cuts. This decision comes amidst a strong performance by the American economy and lingering concerns about inflation. Powell has previously indicated that the Fed is not rushing to lower the key benchmark interest rates and will proceed more cautiously with any rate cuts.

Bitcoin, the world's largest cryptocurrency, has held above the $100,000 mark following Powell's speech, reaching a peak of $103,997. The crypto market has remained relatively stable, with investors anticipating the Fed's decision. Bitcoin's price action will likely be influenced by any unexpected developments or surprises from the next FOMC meeting and Powell's comments on future rate cuts.

The Fed's decision to keep interest rates unchanged has been widely expected, with a 99.5% probability indicated by CME FedWatch data. The Fed has been gradually lowering interest rates since late 2024, with cuts of up to 50 basis points possible, depending on economic slowdown and lower inflation. However, the strong performance of the American economy and high inflation have led the Fed to adopt a more cautious approach to rate cuts.

President Donald Trump's return to the White House has raised questions about the potential impacts on the economy and the Fed's future actions. Trump has pushed for an immediate rate cut, but the Fed may hold off due to inflation concerns. Powell's press conference following the FOMC meeting will provide more clarity on future rate moves and the potential implications for the crypto market.