- Interest rates remain at 4.25–4.5% due to economic uncertainties.
- No changes in leadership or FOMC composition were announced.
- Crypto markets anticipate potential stabilization following the decision.
Jerome Powell’s Federal Reserve keeps interest rates unchanged at 4.25-4.5% on May 7, 2025, amidst rising unemployment and inflation risks.
The decision underscores the heightened uncertainty in the U.S. economy and may signal stabilizing effects on cryptocurrencies.
The Federal Reserve Open Market Committee (FOMC) chose to keep the interest rate between 4.25 and 4.5 percent. Jerome Powell and other members are concerned about rising threats to employment and inflation.
U.S. equities and cryptocurrencies reacted cautiously while markets interpret the Fed’s dovish stance. Bitcoin and Ethereum may stabilize as rate hikes pause.
Financial markets have paused new fixed-income allocations pending clearer directions on monetary policies. Arthur Hayes and Raoul Pal suggest that risk assets like cryptocurrencies typically gain when the Fed pauses.
“The Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent.” — Jerome Powell, Chair, Federal Reserve
On-chain data from previous periods suggests stable or increasing DeFi activity under consistent interest rates. This decision may herald a favorable climate for decentralized finance protocols and cryptocurrency stabilization.
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