Fed Holds Rates Steady Amid Elevated Inflation; Powell's Press Conference Awaited

Federal Reserve Keeps Interest Rates Unchanged, Notes Elevated Inflation

The Federal Reserve has decided to keep its benchmark interest rate range unchanged at 4.25% to 4.50%, in line with market expectations. In its accompanying policy statement, the central bank acknowledged that inflation remains "somewhat elevated."

Fed Chair Jerome Powell's post-meeting press conference is scheduled to begin shortly, where market participants will look for further guidance about future policy.

Powell has previously indicated that the Fed is not in a hurry to cut interest rates and will proceed more cautiously with any rate cuts. The central bank has been monitoring incoming data, labor market trends, and inflation developments to determine the appropriate course of action.

The Fed's decision comes as the U.S. economy continues to show solid economic growth and stable low unemployment levels. However, the central bank remains vigilant about the potential risks posed by elevated inflation.

Cryptocurrency markets have been relatively stable in anticipation of the Fed's decision, with Bitcoin maintaining levels above $100,000. 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.

However, the Fed's decision to keep rates unchanged may lead to some volatility in cryptocurrency markets, as investors reassess the potential impact on risk assets. Powell's press conference will provide further clarity on the Fed's future policy stance and its potential implications for cryptocurrencies.