The central bank of the United States, the Federal Reserve, has
determined
to maintain its key interest rate. It will remain within the established
range of 4.25% to 4.5%.
Currently, Bitcoin’s price is hovering around $117,650, showing very little
movement in either direction.
The Federal Reserve has stated that the pace of economic expansion has
“slowed down” during the initial six months of the year.
Simultaneously, inflation is described as still being “somewhat high,”
indicating that it remains above the Federal Reserve’s frequently stated
objective of 2%.
Internal disagreement
It’s important to note that a couple of Federal Reserve officials,
specifically Governors Bowman and Waller, disagreed with the majority’s
conclusion. They were in favor of reducing interest rates by 0.25%. The
final vote count was 9 in favor and 2 against. Governor Adriana Kugler
abstained from voting.
Tone change
The Federal Reserve has altered its wording from a previous statement that
the uncertainty surrounding the economic outlook had “decreased.” The updated
statement conveys that “uncertainty continues to be significant.”
What’s next?
Financial futures suggest that market participants currently estimate a 68%
probability that the Federal Reserve will choose to lower interest rates by
at least 0.25% at their meeting in September. Moreover, there is a 65%
chance that the Federal Reserve will implement another interest rate
reduction of at least 0.25% during the December meeting.
However, Chairman Powell has made it clear that no definitive decisions have
been reached at this point in time.