The Federal Reserve, under Trump’s presidency, kept the interest rate unchanged at 4.25 to 4.5 percent for the second time. Following this decision, the market value of digital currencies reached $2.9 trillion, and the price of Bitcoin (BTC) increased to around $85,000. According to the latest data, the Federal Reserve has significantly adjusted its growth forecast and expects fewer interest rate cuts this year. Only 11 out of 19 members predict at least two interest rate cuts, down from 15 in the December meeting. Jerome Powell, the Federal Reserve Chair, warned about signs of consumer pressure despite the overall strength of the U.S. economy. Powell mentioned that inflation remains high, and new tariffs could jeopardize price stability. MartyParty’s analysis indicates that the Federal Reserve will slow down balance sheet reduction from April 1 and increase government bond repurchases from $25 to $5 billion. However, the maximum limit of mortgage-backed securities (MBS) at $35 billion will be maintained to ensure financial stability. Analysts suggest that the Federal Reserve’s contractionary policies continue, delaying the expected quick return of liquidity to the markets. Nevertheless, after the Federal Reserve’s interest rate announcement, the crypto market surged alongside the S&P 500. Ethereum (ETH), Solana (SOL), and Ripple (XRP) saw increases of 5%, 7%, and 10% respectively. Visit the real-time digital currency price page to monitor token and cryptocurrency prices live.
