#Fed June Rate Decision#

📌 FED June Interest Rate Decision (2025)
• 🗓 Date and Decision: The US Federal Reserve (Fed), at its meeting on June 18, 2025, kept interest rates unchanged in the range of 4.25% - 4.50%. This means that interest rates have been left unchanged for the fourth consecutive time.
• 📉 Forward-Looking Expectation: The Fed anticipates that two interest rate cuts may occur before the end of 2025. However, this will depend on the course of inflation and economic indicators.
• 📊 Economic Projections:
• 2025 growth forecast: %1.4
• Unemployment rate: expected to rise to 4.5%
• Year-end inflation forecast: around %3 (Target: %2)
• ⏸ Why Was It Kept Stable?: The Fed is cautious that rising costs, particularly new tariffs, could trigger inflation. Therefore, it prefers a "wait-and-see" policy.
• 💬 Chairman Powell's Statement: "There is progress in combating inflation, but it is not enough. We do not want to make an early decision to ease."

📈 Reaction of the Markets and Politics
• Bond yields: Following the decision, 10-year U.S. Treasury yields initially fell, then rose again to around 4.4%.
• Market Expectation: There are pricing indications that the first interest rate cut may come in September 2025.
• Political Pressure: Former President Donald Trump criticized Fed Chairman Jerome Powell for keeping interest rates high, calling for "immediate cuts."

💡 What Does It Mean?
• For consumers: The costs of credit cards, mortgage loans, and other borrowing have not changed. However, if interest rate cuts come, these costs may decrease over time.
• For investors: Market volatility may increase ahead of the meetings in September and December.
• Crypto & Stocks: Expectations of interest rate cuts may increase interest in risk assets.