Bitcoin News Today: Fed Holds Rates Steady at 4.25%-4.50% Amid Economic Uncertainty and Trump Pressure

The U.S. Federal Reserve maintained its benchmark interest rate within the 4.25% to 4.50% range during its July 2025 policy meeting, consistent with market expectations [2]. The overnight reverse repo rate was held at 4.25%, the interest rate on reserves at 4.40%, and the discount rate at 4.50% [2]. The decision came amid ongoing economic uncertainty and amid calls from President Donald Trump for a more accommodative monetary policy [4]. Despite Trump’s persistent criticism, the Fed has kept rates unchanged for seven months, reflecting a cautious approach to managing inflation and economic stability amid potential tariff-related risks [4].

The market’s focus shifted immediately to Fed Chair Jerome Powell’s post-meeting press conference, held at 21:30 UTC+3, for further signals on future policy direction. Powell did not indicate an imminent rate cut, but his remarks suggested a willingness to adjust policy if inflationary pressures ease and economic conditions improve [1]. The press conference, therefore, served as a pivotal moment for investors seeking clarity on the Fed’s evolving stance [1].

Bitcoin initially responded to the Fed’s decision with a pullback, falling below $118,000 amid caution around the central bank’s policy and concerns about potential new tariffs [5]. The cryptocurrency’s reaction highlights its sensitivity to macroeconomic signals, particularly those issued by major central banks. The move underscores the continued interplay between traditional financial markets and digital assets, as both sectors remain closely tied to U.S. monetary policy [5].

Analysts had previously shown a wide range of expectations for the meeting. Some, including those referenced in an article published on July 30, predicted a 65% probability of a rate cut, emphasizing the importance of the Fed’s communication strategy during the meeting [9]. However, the decision to maintain current rates signals a more data-dependent approach, with no immediate indication of policy change on the horizon [9].

As the Fed continues to monitor inflation and broader economic conditions, the market remains in a state of watchful anticipation. The July meeting reaffirmed the central bank’s commitment to price stability, despite external pressures such as political rhetoric and global economic risks [8]. This outcome is likely to keep both traditional and digital asset markets on edge, as investors and traders closely follow subsequent developments and policy signals from the Fed in the coming weeks [8].

Source:

[1]BREAKING: FED Announces Its Much-Anticipated Interest Rate Decision – Here Are the Details and Bitcoin’s First Reaction (https://en.bitcoinsistemi.com/breaking-fed-announces-its-much-anticipated-interest-rate-decision-here-are-the-details-and-bitcoins-first-reaction/)

[2]Source Close to the Fed Comments on Interest Rate Decision and FOMC Statement Here’s What You Need to Know (https://en.bitcoinsistemi.com/source-close-to-the-fed-comments-on-interest-rate-decision-and-fomc-statement-heres-what-you-need-to-know/)

[4]FTSE Muted, Wall Street Rises as US Economy Grows Faster ... (https://uk.finance.yahoo.com/news/live-wall-street-us-economy-fed-rate-decision-081936649.html)

[5]Bitcoin Falls Below $118,000 Amid Fed, Tariff Caution (https://www.economies.com/crypto/news/bitcoin-falls-below-$118,000-amid-fed,-tariff-caution-46988)

[8]July Fed Meeting: Live Updates and Commentary (https://www.kiplinger.com/newsg/live/july-fed-meeting-updates-and-commentary-2025)

[9]How to Trade the July Fed Meeting (https://www.investing.com/analysis/how-to-trade-the-july-fed-meeting-200664499)