Bitcoin hovered around $104,200 on Wednesday after the Federal Reserve left benchmarks Interest rates have not changed 4.25% to 4.50% in line with expectations.
Policymakers are forecasting two interest rate cuts this year again, but they spoke carefully, citing increasing inflation related to tariffs as reasons to delay action.
The Fed’s updated economic forecast, including quarterly dot plots, shows that officials expect the benchmark rate to fall to 3.9% by the end of 2025, implying a 50 basis point cut this year. However, the pace of easing beyond that is slower than previously expected, with rates seen at 3.6% in 2026 and 3.4% in 2027.
At a post-meeting press conference, Chairman Jerome Powell ruled out hiking as a basic incident, but emphasized the need for clarity.
“If you wait a few months, you’ll make smarter decisions,” he said. He added that “the labor market is not screaming for interest rate cuts,” the current conditions allow the Fed to maintain patients.
Other forecasts showed higher inflation expectations compared to March. The Fed currently expects PCE inflation and core PCE to be 3.1% in 2025. GDP growth has been revised to 1.4%, but the unemployment rate rose to 4.5% this year, continuing to rise until 2026.
Bitcoin has changed little since its announcement, but the US stock market has risen.
