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The United States Federal Reserve decided to keep general interest rates unchanged at 4.25% to 4.5% – a move that was largely expected by the broader market.
In fact, as CryptoPotato reported yesterday, more than 98% of the volume on Polymarket regarding potential rate cuts was betting on “no change.” As a reminder, the odds are are considerably higher for the Fed’s decision during September’s FOMC meeting when 41% of the traders expect the institution to cut rates by 25 basis points.
The Fed’s decision comes amid mounting political pressure as President Donald Trump continues with his questionable rhetoric calling Chairman Jerome Powell “stupid,” earlier today.
The Fed holds rates steady. No surprises from the FOMC.
All eyes now on Powell’s speech in 30 minutes for signs of easing.
Meanwhile, Trump:
“Am I allowed to appoint myself head of the Fed?”
“I’d do a much better job than Powell.” pic.twitter.com/Trn9dQI7TL— CryptoPotato Official (@Crypto_Potato) June 18, 2025
“So, we have a stupid person. Frankly, you probably won’t cut today. […] Europe had 10 cuts and we had none. And I guess he’s a political guy, I don’t know. He’s a political guy who’s not a smart person, but he’s costing the country a fortune.”
Meanwhile, Bitcoin’s price has remained largely steady following the decision and currently trades at around $104,200.
It’s also worth noting that the FOMC update also included a few additional remarks by the institution. Namely:
- Ups inflation forecast to 3%
- Cuts 2025 GDP forecast to 1.4%
- Sees 50bps in cuts this year
- Rates projected at 3.6% in 2026 and 3.4% in 2027
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