Fed Holds Rates Steady Amid Trump's Calls; Crypto Market Unmoved

The US Federal Reserve has maintained its benchmark interest rate at 4.25-4.50% despite President Trump's call for a rate cut. This decision comes after the committee lowered rates three times consecutively last year. The Fed's pause in rate cuts aims to stabilize high inflation and gradually reduce it to the target range of 2%.

The crypto market remained stable following the Fed's decision, as it had already expected the rate to remain unchanged. Bitcoin price made a minor decline, dropping from the peak of $102.9K to the low of $101.7K. Market attention will now shift to the next FOMC meeting and comments from Powell on future rate cuts.

The Fed's decision not to rush into rate cuts is in line with Chair Jerome Powell's previous statements. The committee will proceed cautiously with any rate cuts, taking into account incoming data, labor market trends, and inflation developments. The central bank noted solid economic growth and stable low unemployment levels, suggesting no immediate need for rate cuts.

President Trump's administration has proposed 25% tariffs on goods from Mexico and Canada, which could complicate the economic outlook. Additionally, large-scale deportations could strengthen the labor market and lead to higher inflation. Analysts believe that these actions are more likely to increase inflation rather than help to reduce it.

The crypto market's attention will now turn to the next FOMC meeting and comments from Powell on future rate cuts. Any unexpected developments or surprises will likely be the key drivers of Bitcoin's price action.