Federal Reserve Maintains Rates, Focuses on Inflation Risks

Jerome Powell, Chair of the U.S. Federal Reserve, affirmed on June 24, 2025, that while inflation has eased, it remains above target, maintaining interest rates in a steady position.

Federal Reserve’s Approach

The Federal Reserve has held policy interest rates steady while observing persistent inflationary pressures. Jerome Powell’s presentation of the Semiannual Monetary Policy Report emphasized vigilance in managing economic risks. These actions come amid ongoing analysis of U.S. monetary policy effectiveness.

Role of Key Policymakers

Key figures and policymakers, including Powell, remain central as the Federal Open Market Committee (FOMC) deliberates on optimal economic strategies. Recent Fed decisions aimed to stabilize economic growth, with U.S. GDP expected to grow by 1.4% in 2025. For more insights, the FOMC Press Conference provides additional details on economic conditions and policy decisions.

Crypto Market Response

Crypto markets responded to Powell’s remarks with risk-off sentiment prevalent, yet no dramatic reallocations have occurred. Assets such as Bitcoin and Ethereum may experience intraday volatility but maintain overall stability post-announcement. The steady interest rate signals deeper macroeconomic stability, but experts warn of potential shifts if inflation remains high.

Economic Outlook

Trade concerns tighten USD sentiment, influencing short-term cryptocurrency market flows. Economists and financial analysts continue to monitor potential outcomes from Federal Reserve actions, noting prior volatility trends post-FOMC updates. Powell’s current strategy suggests adaptability in addressing inflationary challenges while guiding future market expectations.

Inflation has come down a great deal but has been running somewhat above our 2 percent longer-run objective. We are attentive to the risks to both sides of our dual mandate.” – Jerome H. Powell, Chair, U.S. Federal Reserve