The FED Leaves Interest Rates Unchanged

The FED left interest rates unchanged, as expected.

Bitcoin Price Action After Interest Rate Decision

Following this unsurprising development, Jerome Powell’s meeting at 21:30 UTC+3 Türkiye time will be closely watched.

The Fed’s decision comes amid growing concerns about Trump’s trade policies, mass layoffs of federal employees, and broader economic changes. A variety of economic indicators show consumer spending and job growth slowing. After an initial surge of optimism following Trump’s election, the economic expansion now appears to be moderating. Federal workforce reductions led by Elon Musk’s Department of Government Efficiency (DOGE) have added further pressure, raising concerns about local economies and unemployment benefits for displaced workers.

The economic outlook has also fueled volatility in financial markets. Last week, the S&P 500 entered correction territory, shedding 10% from its recent peak, marking its first decline in three years. Investors remain uncertain about the long-term impact of Trump’s policies, complicating the Fed’s decision-making process.

Former Treasury Secretary Larry Summers described the economic situation as a “stagflationary shock” in an article on X, illustrating the difficult problem central bankers face due to rising import prices and reduced employment.

> This is not investment advice.