The U.S. Federal Reserve left interest rates unchanged at 3.5%-3.75%, marking its second consecutive pause as policymakers navigate an increasingly uncertain macro environment. Chair Jerome Powell’s remarks signaled a return to caution.
Policymakers now expect inflation to reach around 2.7% this year, with energy prices driven by Middle East conflicts playing a key role. The Fed emphasized it is not on a preset path for rate cuts.
Crypto markets reacted negatively to the decision, with Bitcoin slipping toward $71,000. Ethereum and other major assets posted sharper losses.