Federal Reserve Maintains Interest Rates; Bitcoin Struggles Below $90K

Federal Reserve Maintains Interest Rates

The US Federal Reserve decided to keep interest rates unchanged, maintaining the federal funds rate target between 3.5% and 3.75%. The decision reflects confidence in solid economic growth, stable labor markets, and continued elevated inflation.

Bitcoin Remains Below $90K

Bitcoin showed minimal response to the Fed's announcement, staying near $90,000. The leading cryptocurrency has fluctuated between $80,000 and $95,000 since mid-November, illustrating investor caution amid evolving monetary policies.

Broader Market Trends

The crypto market has remained subdued, influenced by geopolitical tensions involving the US, Venezuela, and Iran, alongside trade uncertainties. Investors have shifted towards assets like gold and silver, which are reaching record highs. Equities, including the S&P 500, are also on the rise, indicating a preference for traditional safe havens over cryptocurrencies.

Fed's Commitment

The Federal Open Market Committee reiterated its dedication to achieving maximum employment and a 2% inflation target, while acknowledging ongoing economic uncertainties. The Fed emphasized its readiness to adjust policies based on emerging risks that could affect its objectives.

The decision was supported by Chair Jerome Powell and most voting members, with dissent from Stephen Miran and Christopher Waller, who favored a rate cut.