The U.S. Federal Reserve kept its benchmark interest rate unchanged despite political pressure from President Donald Trump. After Fed Chair Jerome Powell's remarks, the price of Bitcoin (BTC) briefly dipped, but quickly rebounded and surpassed $99,000 for the first time since February.
Fed Keeps Rates Steady – Powell Warns of Inflation Risks
At the May 7 meeting, the Federal Open Market Committee maintained the interest rate in the range of 4,25–4,50%, citing persistent inflationary risks and potential unemployment growth. According to Powell, inflation still exceeds the Fed’s 2% target, while business and consumer confidence have sharply declined, partly due to concerns over Trump’s trade policies.
Powell emphasized that despite the uncertainty, the U.S. economy remains stable and the labor market is near “maximum employment.”
Following the Fed’s statement, Bitcoin fell to $95,800, but within hours climbed back above $98,000. According to CoinMarketCap, BTC stood at $99,600 at the time of publication. This is the first time in nearly three months that Bitcoin has crossed this level.
Infrastructure and Sentiment Fuel the Rally
Data from CME FedWatch shows that markets did not expect a rate cut in May. Analysts forecast that the Fed’s rate could fall to 3,6% by the end of 2025.
