The Federal Reserve maintained interest rates at 3.50% to 3.75%, citing heightened geopolitical risks and rising oil prices, while raising its 2026 inflation expectations to 2.7%. This decision, combined with the previous dot plot projection of only one rate cut possible in 2026, pressured risk assets, with Bitcoin declining nearly 4% to around $71,600, and major U.S. stock indices also declining. Federal Reserve Chair Jerome Powell noted that the impact of Middle East tensions on the economy remains unclear and emphasized that future policy will be data-driven.
The Federal Reserve maintained interest rates at 3.50% to 3.75%, citing heightened geopolitical risks and rising oil prices, while raising its 2026 inflation expectations to 2.7%. This decision, combined with the previous dot plot projection of only one rate cut possible in 2026, pressured risk assets, with Bitcoin declining nearly 4% to around $71,600, and major U.S. stock indices also declining. Federal Reserve Chair Jerome Powell noted that the impact of Middle East tensions on the economy remains unclear and emphasized that future policy will be data-driven.