Bitcoin News Today: U.S. Fed Maintains 4.25%-4.50% Rate Range Amid Trump Pressure

The U.S. Federal Reserve has announced its decision to maintain the benchmark interest rate within the 4.25% to 4.50% range during its July 29–30, 2025, meeting, despite growing political pressure from President Donald Trump to implement aggressive rate cuts [1]. This decision, consistent with market expectations, underscores the central bank’s cautious approach to balancing inflationary risks against economic growth. The Fed’s stance has drawn scrutiny from Trump, who argues that high borrowing costs are stifling business activity and the housing market [2]. However, Chair Jerome Powell emphasized that the Fed’s actions are data-driven, with statements like, “We are committed to making decisions based on the data we gather, which reflects the current economic landscape and inflation trajectories” [2].

The decision has immediate implications across traditional financial sectors. Mortgage rates, tied to Treasury yields, remain near 6.8% for 30-year fixed loans, exacerbating a sluggish housing market [2]. Credit card and auto loan rates also remain elevated, with the latter averaging 7.22% due to rising vehicle prices and tariff pressures [2]. In contrast, savers have benefited from high-yield accounts offering returns exceeding 4%, a rare advantage in the current climate [2].

Cryptocurrency markets, historically sensitive to monetary policy shifts, have shown heightened volatility in anticipation of the Fed’s decision. Bitcoin (BTC) traded at approximately $116,200, reflecting a 5.7% decline from its July 14 peak [4]. Analysts note that a potential rate cut could boost liquidity in risk-on assets like crypto, but the likelihood of an immediate reduction remains low. Derivative markets and prediction platforms, including Polymarket, assign a 96.3% probability that the Fed will hold rates in July [5]. Ethereum (ETH) and other altcoins have mirrored BTC’s cautious trajectory, with broader declines observed amid speculative positioning [6].

The Fed’s rate-holding strategy is influenced by broader economic tensions. While inflation has cooled to 2.7%, concerns persist that Trump’s proposed tariffs could reignite price pressures later in 2025 [7]. Powell’s reluctance to act preemptively highlights the Fed’s dual mandate of controlling inflation and supporting employment, even amid political pressures. Markets are now pivoting focus to the September meeting, where a 62% probability of a rate cut is priced in via the CME Group’s FedWatch tool [3].

For investors, the prolonged status quo underscores the interplay between monetary policy and geopolitical factors. Traditional sectors face continued high borrowing costs, while crypto markets remain in a wait-and-see mode. The Fed’s final statement, expected on July 31, will offer further clarity on its policy trajectory, though the path ahead remains fraught with uncertainty. As the September meeting approaches, the central bank’s ability to navigate inflationary risks without derailing growth will be pivotal for both conventional and digital asset markets.

Sources:

[1] Yahoo, [https://finance.yahoo.com/news/us-fed-poised-hold-off-032010188.html]

[2] CNBC, [https://www.cnbc.com/2025/07/25/fed-likely-to-hold-interest-rates-steady-despite-trumps-pressure.html]

[3] Investopedia, [https://www.investopedia.com/what-to-expect-from-the-fed-s-interest-rate-decision-next-week-11778885]

[4] Mitrade, [https://www.mitrade.com/insights/news/live-news/article-3-981656-20250724]

[5] Techi.com, [https://www.techi.com/polymarket-96-3-odds-no-fed-rate-cut-july-2025-fomc/]

[6] Fortune, [https://fortune.com/crypto/2025/07/25/bitcoin-price-today-fed-rates-trump-powell/]

[7] AInvest, [https://www.ainvest.com/news/fed-holds-rates-2-7-inflation-markets-eye-september-cut-62-probability-2507/]