LATEST: FED Announces Critical Interest Rate Decision! Here are the Details and Bitcoin's Initial Reaction

The FED finally announced its interest rate decision after the two-day monetary policy meeting.

The FED kept interest rates unchanged. The market expectation was also that the institution would keep its policy interest rate steady.

However, economic indicators and political uncertainties make it necessary to provide clearer messages regarding the upcoming period.

The FED has kept interest rates stable at around 4.4% since January. Officials have stated that they want to see the effects of the tariffs and other large-scale economic policies implemented by President Donald Trump, and are taking a cautious stance on interest rate cuts.

Economists expect the FED to cut interest rates this year. According to this forecast, especially any increase in unemployment will be the most important factor triggering the interest rate cut. Wells Fargo Chief Economist Jay Bryson stated, "The FED will begin to cut interest rates in the second half of the year as tariffs exert pressure on growth and the unemployment rate rises."

The increasing geopolitical tensions in the Middle East are deepening economic uncertainties. It is noted that if the policies of the Trump administration suppress consumer spending and reduce corporate profits, there could be significant weaknesses in the labor market. This could also be a signal for interest rate cuts in line with the "maximum employment" goal outlined in the FED's mandate.

Today, the new economic projections of the FED, which will be announced, are expected to reflect at least one interest rate cut expectation within this year. However, these possible steps do not seem to please President Trump, who has criticized the fact that interest rates have not yet been lowered. Trump had previously referred to FED Chairman Jerome Powell as "stupid" and "foolish."

Now all eyes will be on the press conference to be held by FED Chairman Jerome Powell at 21:30.

*It is not investment advice.

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