The Fed maintains its rates: what impacts on the economy and cryptos?

Large monetary decisions have been made in the United States, with world economic repercussions. Analysts were looking forward to the choices of Jérôme Powell and the American Federal Reserve. Finally, those who hoped for a change remained hungry: the Fed decided to maintain its rates between 4.25 % and 4.50 %. An announcement that did not fail to react the financial markets.

US economy: FED maintains its rates, what risks for growth?

Krach or rally? There Fed guiding rate stability was expected, but it does not solve economic tensions. The Federal Open Market Committee (FOMC) is faced with a dilemma: Maintain growth without rekindling inflation. Some experts fear Stagflationfed by Donald Trump's pricing increases and budget cuts.

The economic context remains fragile:

• A loss of speed market with increased layoffs;
• Growth forecasts revised downwards;
• A consumption that slows down under high rates.

Wall Street reacted prudently Long before the announcement, the main stock market indices recorded a slight increase. But for how long? Should the Fed adjust its policy before the situation deteriorates more?

Inflation: an unstable balance for the Fed

The Fed justifies its decision by the need to Maintain inflation in its target of 2 %. After aggressive increases since 2022, the American central bank plays caution. However, the question remains: by dint of tightening the valves, does it not risk stifling the activity?

The Stagflation scenario worries economists. Prolonged economic slowdown combined with persistent inflation could force the Fed to review its strategy earlier than expected. Moreover, some economists are concerned about the cumulative effects of the high rate and volatility policy of the financial markets.

Jerome Powell remains firm:

“” We remain on standby in the face of the evolution of the economy and adjust our policy accordingly. »»

But the market will not be able to wait indefinitely. Pressure rises and investors are already scrutinizing the next FOMC decisions feverishly.

Bitcoin and Ethereum: a reactive crypto market

The crypto market was suspended from the Fed lips. The announcement of the monetary status quo had a mixed effect. Bitcoin, which has been going through a lower phase for two months, could find colors, some analysts already seeing A rebound above $ 90,000.

Ethereumfor his part, has already jumped 6 % (7.5 % at the time of writing this article), taking advantage of an upward dynamic before the FOMC meeting. According to Markus Thielen, CEO of 10x Research:

“” We could see a counterattack rally, the prices being followed. »»

The impact of monetary decisions on cryptos cannot be denied. Investors scrutinize the end of the quantitative tightening program and hope for a relaxation of financial conditions. In the meantime, volatility remains the watchword on the Crypto market.

The FOMC is a major event that can affect financial and cryptos markets. Its impact on the scholarship and monetary policy is carefully scrutinized, because a simple ad can redraw the strategy of traders and investors. Those who know how to exploit it can see their performance multiplied.