{"id":14569,"date":"2025-07-31T08:24:46","date_gmt":"2025-07-31T06:24:46","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=14569"},"modified":"2025-07-31T08:24:46","modified_gmt":"2025-07-31T06:24:46","slug":"federal-reserve-maintains-interest-rates-amid-trumps-plea-for-reductions","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/07\/31\/federal-reserve-maintains-interest-rates-amid-trumps-plea-for-reductions\/","title":{"rendered":"Federal Reserve Maintains Interest Rates Amid Trump’s Plea for Reductions"},"content":{"rendered":"

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Investors lowered their projections for a rate reduction in September following Federal Reserve Chair Jerome Powell\u2019s ambiguous replies during a press briefing on Wednesday.<\/p>\n

A cryptocurrency analyst indicates this may result in a more gradual crypto bull market. <\/p>\n

The United States central bank chose<\/a> to hold interest rates steady at 4.25% to 4.5%, citing uncertainty regarding the economic forecast, which has been described as \u201cremaining significant.\u201d<\/p>\n

No determinations regarding September<\/h2>\n

Powell stated<\/a> that rising tariffs are beginning to impact consumer prices for certain categories of products. He did not dismiss the possibility of keeping rates<\/a> unchanged in the upcoming Federal Open Market Committee (FOMC) gathering in September, noting that it will depend on economic indicators over the following two months.<\/p>\n

\u201cWe have made no determinations about September; we don\u2019t decide that ahead of time,\u201d he remarked.<\/p>\n

\u201cIf the unemployment rate stays stable and tariffs lead to higher inflation, it will be challenging to justify a rate cut in the coming months,\u201d Bill Adams, chief economist at Comerica Bank, told<\/a> Reuters.<\/p>\n

US interest rates remain near their apex levels in over a decade. Source: <\/em>Trading Economics<\/em><\/a><\/figcaption><\/figure>\n

Powell<\/a> opposed US President Donald Trump, who has advocated for reduced rates<\/a>, sticking to his wait-and-watch strategy amidst rising worries that the ongoing trade conflict could hinder achievements towards the central bank\u2019s 2% inflation goal.<\/p>\n

The current US inflation rate is at 2.7% and has risen for the past four months.<\/p>\n

Rate cut likelihood wanes<\/h2>\n

Powell\u2019s remarks diminished the chance of a rate cut in September to 40% following the meeting, down from 63% prior to the FOMC announcement.<\/p>\n

\u201cShould the Fed continue its prudent approach, the speed of the bull market may decelerate, but the underlying surge in liquidity could maintain solid ground for a future rebound,\u201d Nick Ruck, director at LVRG Research, informed Cointelegraph.<\/p>\n

\u201cThe market had anticipated no rate cut this week, so this comes as no shock,\u201d Apollo Capital\u2019s chief investment officer, Henrik Andersson, shared with Cointelegraph.<\/p>\n

Nonetheless, the market still foresees one to two rate cuts prior to the year\u2019s end.<\/p>\n

\u201cWe don\u2019t believe this will significantly impact the crypto market; it has been evident for some time that the uncertainty surrounding tariffs will postpone US rate reductions.\u201d<\/p><\/blockquote>\n

He further mentioned that it was notable that two commissioners dissented, marking the first occurrence of this kind in 30 years. Christopher Waller, a governor, and Michelle Bowman, vice chair for supervision, were in favor of the Fed reducing interest rates by a quarter of a percentage point.<\/p>\n

Related: <\/strong><\/em>Bitcoin makes \u2018big move\u2019 after Fed rate decision, Coinbase Premium turns red<\/strong><\/em><\/a><\/p>\n

Crypto markets experienced a minor dip following the announcement but have recovered during the Thursday morning trading session in Asia.<\/p>\n

Total capitalization stood at approximately $3.94 trillion, maintaining a range-bound channel that has lingered sideways for the past fortnight. <\/p>\n

US rate cuts typically enhance crypto markets as lowered interest rates render traditional savings accounts less appealing, driving investors towards higher-risk, higher-reward assets such as cryptocurrencies. <\/p>\n

Magazine: <\/strong><\/em>Robinhood\u2019s tokenized stocks have stirred up a legal hornet\u2019s nest<\/strong><\/em><\/a><\/p>\n