Powell Stands Firm: Fed Holds Rates Amid Trump's Calls for Cut

The US Federal Reserve, under the leadership of Chair Jerome Powell, has maintained its interest rate at a range of 4.25% to 4.5% following a two-day Federal Open Market Committee (FOMC) meeting. This decision comes despite President Trump's calls for a rate cut. The Fed has been cautious in its approach to lowering interest rates, having made three consecutive cuts in 2024. Powell has indicated that the committee is not rushing to lower the key benchmark interest rates and will proceed more cautiously with any rate cuts.

The crypto market has remained relatively stable in response to the Fed's decision, with Bitcoin price experiencing a minor decline from its peak of $102.9K to a low of $101.7K. Market participants are now awaiting the next FOMC meeting and Powell's comments on future rate cuts, which could potentially drive Bitcoin's price action. Meanwhile, President Trump has been following through on his campaign pledge to remove illegal immigrants from the US, with estimates suggesting that the total number of deportations could range from one million to 10 million. Analysts believe that large-scale deportations could strengthen the labor market and lead to higher inflation.

In addition to deportations, Trump has threatened to impose 25% import tariffs on goods from Mexico and Canada starting as soon as Saturday. Most economists believe that these actions are more likely to increase inflation rather than help to reduce it. Although the president does not have direct control over the Federal Reserve's policy decisions, he and Fed Chair Jerome Powell have clashed over policy since Trump's first term in office. Just last week, Trump stated that he would "demand an immediate drop in interest rates."