The Federal Reserve has once again defied President Donald Trump’s persistent calls for interest rate cuts, maintaining the current rates for the fifth consecutive meeting. The central bank’s decision came through a decisive 9-2 vote, demonstrating strong resistance among Fed officials to monetary easing despite ongoing political pressure.
This latest move by the Fed arrives on the heels of encouraging economic data from the United States. The country’s GDP report showed a remarkable rebound in the second quarter, recovering substantially from the previous quarter’s downturn. However, Fed officials remain cautious about economic conditions, noting that growth indicators suggest the economy’s expansion has moderated while inflation continues to run somewhat above target levels.
Political Pressure Continues to Mount
Throughout recent months, Trump has repeatedly urged Fed Chair Jerome Powell to implement rate reductions, at one point calling for what he described as the largest rate cut in history at three basis points. These appeals have consistently fallen on deaf ears as the central bank maintains its independent stance on monetary policy decisions.
Following today’s announcement, Trump indicated he had “heard” that the Fed might finally consider lowering rates during their upcoming September meeting. This suggests the political campaign for easier monetary policy will likely continue in the coming weeks.
Bitcoin is stuck between 116K and 120K and ETH is losing momentum just below 4K. The whole market is frozen ahead of the FOMC rate decision in a few hours and inflation data right behind it. Everyone expects the Fed to hold rates steady with 98 percent probability but even that… pic.twitter.com/PZyaKbLOu6
— BLAZEY (@blazeycrypto) July 30, 2025
Bitcoin Holds Steady Around $118,000
Bitcoin, which typically shows sensitivity to Federal Reserve policy decisions, had stabilized around the $118,000 mark earlier in the day as traders positioned ahead of the rate announcement. The cryptocurrency experienced some price swings both before and immediately after the Fed’s decision was released, but has since returned to levels close to its pre-announcement trading range.
Market Sentiment Analysis
The Fed’s continued hawkish stance may weigh on risk assets in the near term as investors reassess their expectations for monetary easing. Bitcoin and other cryptocurrencies could face headwinds as higher interest rates typically reduce appetite for speculative investments.
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