Bitcoin Holds Firm as Fed Pauses Rate Hikes, Cites Inflation and Tariff Risks; Market Watches Leadership, Policy Cues

The U.S. Federal Reserve kept its benchmark interest rate unchanged at 4.25%-4.50% for the seventh consecutive meeting, citing persistent inflation and fresh pressures from tariffs as key reasons for delaying rate cuts. Despite previous forecasts, the Fed now projects a more gradual pace of monetary easing, expecting two rate reductions in 2025 and a slower decline in rates through 2027. Inflation expectations have been revised upward, with PCE inflation anticipated at 3% and core PCE at 3.1% in 2025. U.S. GDP growth was revised down to 1.4%, and unemployment is set to rise to 4.5% and remain elevated. Fed Chair Jerome Powell stressed caution, ruling out imminent rate hikes but also emphasizing patience and the need for additional data, especially regarding the impact of tariffs on inflation. President Trump has intensified criticism of Fed Chair Powell, signaling possible changes in Fed leadership, which analysts warn could inject further volatility if the central bank’s independence is questioned. U.S. equities registered modest gains, while Bitcoin remained steady around $104,200, with little immediate market reaction. For crypto traders, the Fed’s wait-and-see stance and focus on macro risks, such as tariffs and potential central bank policy shifts, signal ongoing uncertainty, likely resulting in range-bound trading for Bitcoin and other major cryptocurrencies in the near term.