Fed Leaves Interest Rates Unchanged at 4.25-4.50%, Bitcoin Surges 4%

Key Points

• The Federal Reserve decided to leave interest rates unchanged at 4.25-4.50%, aligning with market expectations.
• Bitcoin responded positively, climbing 4% and surpassing $84,000 following the announcement.
• The next FOMC meeting is scheduled for May 7, 2025.

The Federal Open Market Committee (FOMC) held its second meeting of 2025 today, announcing that the US Federal Reserve will keep interest rates unchanged at 4.25-4.50%

 This move was widely anticipated by analysts and traders, with CME Group data previously suggesting a 99% probability that the Fed would maintain the current rate.

The decision follows growing concerns over economic risks stemming from President Donald Trump’s tariff policies, which some argue have escalated global trade tensions.

The central bank appears to be taking a cautious stance, waiting to assess inflation trends and the broader economic impact before making any adjustments.

Bitcoin , which had already shown optimism leading up to the meeting, surged 4%, recovering from a recent dip near $81,000 to over $84,000 in afternoon trading.

US Fed Leaves Interest Rates Unchanged

During today’s FOMC meeting, the Fed left the interest rates unchanged at 425-450 basis points.

Expectations were pointing out to the result, and CME Group previously revealed that there was a 99% chance that the rates would remain the same after the meeting.

This was the second FOMC meeting this year, and the Fed’s decision could be motivated by risks threatening the US economy, due to President Trump’s tariff policies which some say have escalated a global trade war.

Official reports were saying that Wall Street also expected that the US central bank would leave the rates unchanged amidst the volatile trade policy and economic uncertainty.

Earlier this month, the Fed’s Chair, Jerome Powell, had already addressed that the Federal Reserve was likely to keep interest rates the same in the coming months as they are waiting to see more details about Trump’s tariffs policies and inflation projections as part of the policy review.

Regardless of the tariff Trump recently marked an important accomplishment, not only for the markets, but for humanity, as he spoke with Russian President, Vladimir Putin, and they concluded that it’s time for the Russia-Ukraine war to come to an end .

After this year’s first FOMC meeting, Powell said that the central bank is not in a hurry to cut rates, and the pause comes as it’s curious to see further progress on inflation. Last week, the US CPI data showed an eased inflation in the US.

The next FOMC meeting is scheduled to take place on May 7.

Last year, the Fed cut interest rates multiple times, due to higher inflation, moves that triggered a surge in the price of BTC. However, despite today’s decision, Bitcoin has enough reasons for future growth.