As we expected at university, the American federal reserve left stable reference rates at 4.25% -4.50% Wednesday at the June meeting.
“Although the oscillations in net exports affected data, recent indicators suggest that economic activity has continued to develop at a solid pace,” the press release said. “The unemployment rate remains low and labor market conditions remain solid. Inflation remains somewhat high.”
The quarterly economic projections of the Fed – which include the “point plot” which indicates where the central bank expects the rate of federal funds over time – has shown that decision -makers can see the rates to 3.9% by the end of 2025, resulting in 50 basic points discounts this year, the same thing as expected in March. However, Fed members see rates decrease to 3.6% next year and 3.4% in 2027, indicating less rate drops than their previous projection.
Political decision -makers have also reduced their economic growth projections, the increase in GDP this year observed to 1.4% against 1.7% in March forecasts. They also projected higher inflation for this year, with personal consumption expenses (PCE) and an landing of basic PCE inflation at 3% and 3.1%, compared to 2.7% and 2.8% in March. Fed members also see the unemployment rate of 4.5% this year and in 2026, against 4.4% and 4.3% of walking projections.
Bitcoin (BTC), oscillating about $ 104,000 earlier during the session, was not changed at $ 104,200 after the Fed decision. The S&P 500 and Nasdaq indices were increasing.
“Fed dot intrigue reveals a clear trend towards stagflationary pressures, a scenario where economic growth slows down while inflation and unemployment remain uncomfortably high,” said David Hernandez, specialist in Crypto in Digital Asset Manager 21Shares.
This combination has historically eroded the value of traditional investments and fiduciary currencies, but it could be beneficial for Bitcoin because of its rarity, its nature without borders and the lack of dependence on American economic production.
“The new capital will inevitably seek assets which offer a reserve of growth value and potential, a research which leads a lot directly to the BTC,” said Hernandez.
Read more: the risk signal for nourished stagflation could be optimistic for Bitcoin, says the analyst
Update (June 18, 19:31 UTC): Add comments from the analyst.
