The Federal Reserve held the federal funds rate steady last night, marking the first pause after a series of rate cuts that began in late 2025. Chair Jerome Powell emphasized in the press conference that the U.S. economy remains on solid footing, the labor market is stable, but inflation still sits slightly above the 2% target, hence the decision to hold.
Internal Split at FOMC; Powell Reiterates Data Dependence
The committee saw a dissent, with some members favoring a 0.25% cut, but the overall stance remained neutral. Powell reiterated that future moves will rely entirely on data, not a predetermined path. The current rate level is viewed as “non-restrictive,” and market expectations for just one more cut this year barely shifted.
Traditional Markets Unmoved; Crypto Volatility Limited
During and after the FOMC meeting, traditional financial markets barely budged. U.S. stocks and bonds traded in tight ranges, with the dollar index fluctuating mildly. Investors had already priced in the rate pause, and Powell’s defense of central bank independence eased political concerns.
The crypto market also exhibited a “no-change” pattern. Bitcoin hovered around $89,000 during the session and held steady afterward, unable to breach the key $90,000 resistance. Ethereum oscillated near $3,000, while ETF flows continued to exit but without sparking panic selling. Total crypto market cap fluctuated modestly, lacking a clear direction. Traders view the Fed’s wait-and-see stance as neutral, and analysts note that if rates stay put, upcoming rate decisions may exert even less influence on crypto markets before a new Fed chair takes over.
(This article provides market information only and does not constitute investment advice.)