Overview

• The Federal Open Market Committee held the federal funds rate at a 23-year high of 4.25–4.50%, with governors Michelle Bowman and Christopher Waller dissenting in favor of a 25 basis-point cut.
• Chair Jerome Powell cited elevated uncertainty and potential inflationary pressures from President Trump’s tariffs during his post-meeting remarks.
• Cryptocurrency markets experienced over $200 million in leveraged liquidations in one hour, sending Bitcoin briefly below $116,000.
• U.S. Treasury yields dropped ahead of the June personal consumption expenditures report as traders cut the odds of a September rate reduction to around 45%.
• The decision underscored the Fed’s data-driven stance and its willingness to resist political pressure while remaining ready to adjust policy based on incoming inflation and labor data.