The U.S. Federal Reserve, on Wednesday, announced its decision to leave the interest rates unchanged for the second time this year. The interest rate has has been held steady within the range of 3.5 percent to 3.75 percent, chairperson Jerome Powell announced at the end of the two day Federal Open Market Committee (FOMC) meeting.
Amid the ongoing conflict in the Middle East region, Powell said that the economic implications of the tensions remain uncertain for now. In the coming time, Powell said, energy prices are likely to dial up inflation.
“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the Fed said in its statement.
The Fed further said that job gains have remained low and the rate of unemployment has also largely remained unchained.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated,” the statement added.
In the backdrop of the Fed’s decision, Bitcoin price dropped by nearly five percent. Its price that was over $72,000 earlier on Wednesday, dropped to $71,390 at the time of writing, data by CoinMarketCap showed. Ether price also tumbled by 6.2 percent to trade at $2,190 at press time.
As per reports, investors did expect the interest rate to remain unchanged for now. In its January meeting as well, the Fed had kept this interest rate unchanged.
The Fed had first capped the interest rate at the 3.5 percent to 3.75 percent range on December 10, 2025. At the time, the rate was cut by 0.25 percent. Since December, these rates have remained unchanged.