Market News: Fed Holds Interest Rates Steady Amid Rising Risks of Inflation and Unemployment

The U.S. Federal Reserve has kept interest rates unchanged at 4.25%–4.50%, citing rising risks of both inflation and unemployment as trade policies add to economic uncertainty.At the conclusion of its two-day policy meeting on Wednesday, the Federal Open Market Committee (FOMC) opted to maintain its benchmark interest rate range, extending its pause on monetary easing for the third consecutive meeting. The decision, which was widely anticipated by markets, comes amid growing concerns about the economic impact of new tariffs under the Trump administration.Fed Flags Growing Economic Uncertainty"Uncertainty about the economic outlook has increased further," the Fed said in its official statement. "The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen."The Federal Reserve is now attempting to navigate a complex macroeconomic landscape where persistent inflation remains above the 2% target, while recent data suggest a cooling labor market. New tariffs imposed on global trade partners by the U.S. have introduced additional variables, prompting policymakers to proceed cautiously.Markets Focus on Powell’s RemarksAll attention now turns to Fed Chair Jerome Powell’s press conference at 2:30 p.m. ET (18:30 UTC), where investors will look for further guidance on potential rate cuts in the coming months. Market consensus still expects up to three rate cuts in 2025, with July viewed as the likely starting point — though Fed officials have stressed the need for more data on the impact of tariffs before adjusting policy.Bitcoin Holds Near $96K After Fed AnnouncementFollowing the decision, Bitcoin (BTC) was trading at $96,600, holding gains from earlier in the session. BTC had briefly fallen below $97,000 during the day amid volatility triggered by ongoing U.S.-China trade negotiations. While the Fed's statement emphasized caution, Bitcoin’s stability suggests investor appetite for alternative assets may persist amid macroeconomic uncertainty.