Bitcoin Spikes as Fed Skips Rate Cut—No ‘Hurry’ Despite Trump Demand

The Federal Reserve let its benchmark interest unchanged on Wednesday and pressed the pause button on his relaxation campaign after delivering three interest rates in a row. And Bitcoin first seemed to fall sharp before he went to a three -day peak.

The decision, which was generally expected under Fed Futures traders, held the federal fund rate at a target range of 4.25% to 4.50%. When the Fed started to relieve in September, the benchmark interest rate was a full percentage higher, and floating in a high of 23 years.

“That Hercalibration or policy position was suitable in the light of the progress of inflation and to re -balance the labor market,” said Fed chairman Jerome Powell. “Wone Doing not need Unpleasant are in A hast Unpleasant to adjust Ohurry policy attitude.”

When the Fed started to lower the interest rates – a movement that is usually a good omen at risk assets such as shares and crypto – the US central bank signaled That supporting the labor market by lowering the loan costs had become a greater priority than to subdue cooling inflation.

During the December meeting, however, policy makers have a relatively approved one Peak look. In the midst of signs of strength in the American economy, the FED indicated that the upward risks for its inflation prospects had increased a newly chosen wildcard in the White House.

Under President Donald Trump, policy makers feared that bringing inflation to the goal of 2% could become more challenging, reference Potential shifts in immigration and trade policy. Since then, Trump’s government has a gradual approach to so -called weighted universal ratesAccording to media reports.

During the December meeting of the FED, policymakers only foreseen two quarter-time-point reductions this year, against the four they had projected in September.

On Wednesday, the US Central Bank did not release any new economic or monetary policy projections, and the Fed said that the “economic outlook is uncertain” in one written statement.

The price of Bitcoin After Wednesday’s decision and fell to $ 101,400 from around $ 103,000 in less than half an hour.
But shortly thereafter, Bitcoin’s price, which was currently around $ 103,800 – the highest price since Sunday.

The FED decision to refrain from cutbacks this month follows the pressure of Trump last week. During the annual meeting of the World Economic Forum in Davos, Switzerland, Trump promised to ‘demand’ the lower interest rates, according to the Associated Press.

Powell refused to comment on what Trump said during a press conference last week, and explained that it would not be “for me to do.” He added that he since he had not had contact with the president recently.

Inflation has fallen considerably since a peak of 9.1% in 2022, but it is still folded at 2.9% in the 12 months to December, according to a Snapshot from the government released earlier this month. Nevertheless, the print helped to calm the inflation jitters after an eruption job report.

While the price of Bitcoin fell below $ 90,000 about two weeks ago, some economists believed that the relaxation of the Fed had ended, show to strength in the US economy. Minutes before the FED decision, traders provided a 28% chance of a rate reduction in March, per Cme fedwatch.

The price expenditure for personal consumption index, the preferred flash of the FED, rose 2.4% annually in November by 2.4%. When a refresh is released on Friday, the index is expected to be an annual increase of 2.6%, according to Commercial economy.

Published by Andrew Hayward