As expected, the Fed decided to keep interest rates unchanged. The first press conference of the new Chairman, Kevin Warsh, is scheduled to begin at 21:30 Turkish time. The Fed lowered its me
As expected, the Fed decided to keep interest rates unchanged.
The first press conference of the new Chairman, Kevin Warsh, is scheduled to begin at 21:30 Turkish time.
The Fed lowered its median growth forecast for 2026 from 2.4 percent to 2.2 percent.
Additionally, the phrase “additional interest rate adjustments” was removed from the decision text.
Bitcoin’s initial reaction was as follows:
Market participants are more focused on Warsh’s remarks than the interest rate decision itself. The new Fed chairman is expected to give clues about what he sees as the biggest risk to the US economy in the face of three months of strong employment data and rising inflation.
Jacob Robbins of the Economics Department at the University of Illinois Chicago stated that the meeting would be a “defining moment” for the future of US monetary policy. Robbins said that whether the Fed maintains its data- and discipline-focused approach or succumbs to political pressure has become crucial in this process.
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The meeting was also the first significant test of the Fed’s independence from political pressure under Warsh’s leadership. Trump had previously told NBC News that he wouldn’t have nominated Warsh to head the Fed if he didn’t believe he would implement rapid interest rate cuts. However, the outlook for the US economy has changed significantly in recent months. Trump later stated that he told Warsh he could “do what he wants” regarding interest rate policy.
One of the biggest problems facing the Fed is rising inflation. In May, wholesale inflation exceeded 6%, while consumer inflation rose above 4%. The impact of the energy shock stemming from the Iran conflict on the US economy is cited as a major factor in this increase.
*This is not investment advice.
Continue Reading: BREAKING: FED Announces Its Highly Anticipated Interest Rate Decision! Here’s Bitcoin’s First Reaction
