Federal Reserve Holds Interest Rates Steady

The Federal Reserve emphasizes the need for sustained evidence of inflation progress before considering rate adjustments.

The announcement of the FED’s interest rate decision, which traditional and cryptocurrency markets had avidly anticipated, was made.

The FED, as anticipated, maintained interest rates unchanged.

Bitcoin’s initial response to his decision was as follows:

At this moment, every eye is fixed on the press conference that FED President Jerome Powell is scheduled to deliver in thirty minutes, Turkey time (UTC+3).

The consensus among economists surveyed by the financial data firm FactSet was that the Federal Reserve would maintain its benchmark interest rate at both its current meeting and its May 1 meeting.

According to data from FactSet, consumers anticipating reduced borrowing costs may not experience any respite until the following month.

Economists Eye Potential June Rate Cut by the Federal Reserve

Approximately half of economists believe that the FED will lower interest rates for the first time in four years during its June 12 meeting.

The Federal Reserve initiated an escalation in interest rates in June 2022, the highest level in the previous four decades, in response to the inflationary pressures caused by the pandemic, which began in March 2022.

Despite a substantial inflation decline since then, it continues to surpass the target level set by the Federal Reserve. Consequently, economists anticipated that the central bank would maintain interest rates unchanged this week.

The Federal Reserve will not alter its forward guidance and emphasizes the need for additional evidence that inflation is progressing sustainably toward the 2% target before considering interest rate reductions, according to a report to investors on Monday authored by Ryan Sweet, chief U.S. economist at Oxford Economics.