The Fed left without changing interest rates, as expected.
Bitcoin price action after interest rate determination
This amazing development is followed closely by the Jerome Powell meeting at 21:30 UTC+3Türkiye time.
The Fed’s decision comes amid growing concerns about Trump’s trade policy, massive layoffs of federal employees, and wider economic changes. Various economic indicators show slower growth in consumer spending and employment. After the initial surge in optimism after Trump’s election, the economic expansion appears to be easing now. Federal workforce cuts led by Elon Musk’s Government Efficiency (DOGE) have put further pressure on them and raise concerns about the local economy and unemployment benefits for displaced people.
The economic outlook is also driving volatility in financial markets. Last week, the S&P 500 entered the corrections area, cutting 10% from its recent peak. This is the first decline in three years. Investors remain uncertain about the long-term impact of Trump’s policies, further complicating the Fed’s decision-making process.
“They face the most difficult challenges central bankers have ever faced because the shock is pushing up import prices and cutting jobs in terms of input costs,” former Treasury Secretary of the Larry Summers wrote in X’s article, describing the economic situation as a “stagflation shock.”
*This is not investment advice.
