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The U.S. Federal Reserve maintained its benchmark interest rate in a 4.25%–4.5% range during its July 30, 2025, meeting, citing continued inflation above 2% and a moderation in economic growth during the first half of 2024. The decision was made in a 9–2 vote, with two governors—Christopher Waller and Lisa Cook—dissenting and advocating for a 0.25 percentage point rate reduction. The decision reflects an internal debate within the Fed on how to balance inflation control with economic growth [1].
The Federal Reserve’s recent statement shifted in tone, removing previous language that suggested economic uncertainty had “diminished.” Instead, it acknowledged that “uncertainty remains elevated,” signaling a more cautious outlook on the near-term economic environment. This change underscores ongoing market volatility and risks, with the Fed closely monitoring inflation and growth indicators [2].
Market expectations have priced in a 68% probability of a 25 basis point rate cut at the September meeting, according to futures data. The likelihood of a second cut in December stands at 65%, suggesting that traders anticipate a more accommodative monetary policy if inflation continues to show signs of easing. These projections indicate that market participants are preparing for potential shifts in Fed policy as the year progresses [3].
Bitcoin’s price has remained stable at around $117,650, showing minimal volatility following the Fed’s rate decision. The cryptocurrency market appears to be digesting the Fed’s cautious stance, with investors watching for further clarity on the direction of monetary policy. Unlike traditional markets, where interest rates have a direct and immediate effect, the response in the crypto space has been measured, with traders holding positions and avoiding large-scale movements [4].
The decision to hold rates steady may encourage crypto investors to remain cautious, as elevated economic uncertainty could deter risk-taking. However, potential rate cuts later in the year could boost risk appetite, which may, in turn, influence Bitcoin and other digital assets. For now, the market is waiting for more definitive signals from the Fed before making significant strategic moves [5].
The Fed’s current policy is a balancing act between inflationary pressures and the need to support economic growth. With inflation still above target and uncertainty persisting, the central bank is unlikely to take aggressive action. This environment has created a period of relative stability for Bitcoin, though the asset’s long-term trajectory will likely depend on how the Fed adjusts its stance in response to evolving economic conditions [6].
Source: [1][2][3][4][5][6]
[1] title: Bitcoin Holds Steady Amid Fed Rate Pause and Internal Disagreement, Future Cuts Possible July 30, 2025 (https://en.coinotag.com/bitcoin-holds-steady-amid-fed-rate-pause-and-internal-disagreement-future-cuts-possible/)

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