Fed Holds Rates, Powell's Caution Sparks Inflation Fears
Wednesday, Jan 29, 2025 4:26 pm ET
Based on the provided news articles, here's a summarized and structured news report on the impact of Federal Reserve Chair Jerome Powell's comments and the Fed's policy decisions on the cryptocurrency market, particularly Bitcoin:The Federal Reserve (Fed) maintained interest rates at 4.25% to 4.5% during its latest meeting, signaling a pause in rate cuts despite President Trump's call for lower rates. This decision comes as the Fed aims to stabilize high inflation and gradually reduce it to its target range of 2%.1. * The Fed's decision to keep interest rates unchanged has sparked renewed inflation concerns among traders. * Market expectations for monetary easing remain active, with the CME FedWatch tool indicating a 46.5% probability of a 25-basis-point rate cut in June and a 43.5% chance in July. * Traders anticipate a reduced Federal Reserve stimulus following the FOMC announcement, with less than a 40% probability of additional cuts.2. * Bitcoin declined 1% following the Fed's announcement but remains above $100K, currently trading just below $102K. * The digital asset had briefly dipped below $100,000 earlier in the week after China's DeepSeek AI launch erased $1 trillion in global market value. * The central bank noted solid economic growth and stable low unemployment levels, suggesting no immediate need for rate cuts.3. * Traders anticipate reduced Federal Reserve stimulus following the FOMC announcement, with expectations for at most two rate cuts in 2025. * The Fed's hawkish stance stalls anticipated rate cuts, igniting fresh inflation worries among traders. * Markets are pricing in less than a 40% probability of additional cuts, suggesting expectations for at most two rate cuts in 2025.In conclusion, the Fed's decision to maintain interest rates and Powell's cautious stance on future rate cuts have sparked renewed inflation 

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