FOMC Meeting News: Will the Fed Rate Cut Come in 2025?

FOMC Meeting News: Fed Holds Rates at 4.50% for 5th Time

In the latest FOMC meeting news, the Federal Reserve decided to keep interest rates steady at 4.50% just as markets expected. This is the fifth straight meeting where the Fed made no changes to rates. 

Source: Wu Blockchain

But what stood out this time was the strong split inside the central bank. The vote was 9-2, the most divided decision in more than 30 years. Two members, Christopher Waller and Michelle Bowman, wanted to cut rates by 0.25%.

Powell Stands Firm Against Early Rate Cuts

Federal Reserve Chairman Jerome Powell made it clear that the central bank is not in a rush to cut rates. Speaking at a press conference after the decision, Powell said the Fed’s main focus is still fighting inflation. 

Not Influenced by Politics: Even though President Donald Trump has called for a big Fed rate cut up to 3% Powell said the bank isn’t influenced by politics or short-term market pressure.

Inflation: He added that they need more data before making any move. Until inflation clearly goes down, the Federal reserve will hold its “modestly restrictive” stance. 

That means rates will stay high enough to cool the economy, but not so high that they cause a crash.

Chances of a September Cut Drop

Before the FOMC meeting news came out, many traders thought a fed rate cut could happen as soon as September. But after Powell’s comments, as per the Fed Watch Tool, the chances have dropped to about 43.2%. That’s a big change from earlier this week, when the odds were close to 64%. 

Source: Fed Watch Tool

Some experts now believe the first cut may come in December, if at all.

Fed’s First Big Split in Decades

This FOMC meeting news also highlighted rising tension within the Federal reserve. For the first time since 1993, two members disagreed with the final decision. 

This shows that while most believe it’s too early to cut rates, some members are already worried that holding steady could slow the economy too much.

Crypto Markets React Quietly

The crypto market didn’t react much to the FOMC meeting news. Bitcoin (BTC) and Ethereum (ETH) stayed in tight ranges. 

Traders seemed to be waiting for stronger signals before making moves. Volatility increased briefly during the announcement, but prices didn’t break out. 

The current crypto market cap stands at $3.88 Trillion with an increase of 0.17%, Bitcoin is trading at $118,376 with 0.17% increase while Ethereum is trading at $3856 with an increase of 0.96% within the last 24 hours as per the CoinMarketcap. 

Source: CoinMarketCap

Many in the crypto space are watching for the next big macro events like the jobs report or PCE inflation data. Until something clear shows up, crypto markets may remain quiet and rangebound.

Looking Ahead

This FOMC meeting news reminds us that the United States Federal Reserve is walking a fine line. They want to lower rates, but only when they’re sure inflation won’t bounce back. Until then, markets both traditional and crypto will stay cautious, watching each new data release for direction.