Federal Reserve Maintains Interest Rates, Powell: Economic Uncertainty Rising, But No Urgency to Cut Rates

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May Maintains Interest Rates Steady

Market Reaction Cautious

The Federal Reserve announced last night that it would keep the federal funds benchmark interest rate unchanged at a range of 4.25% to 4.50%, in line with market expectations. In its post-meeting statement, the Fed noted that despite fluctuations in net exports affecting some data, recent indicators show that economic activity continues to grow robustly. The unemployment rate has remained stable at low levels in recent months, the labor market remains strong, and inflation is still at relatively high levels.
The Fed stated that it would continue to uphold its dual mandate of “stabilizing the labor market and inflation,” but the agency warned that uncertainties regarding the economic outlook have increased, with risks of rising unemployment and inflation both on the rise.
During the post-meeting press conference, Powell reiterated the Fed’s position of not rushing to cut interest rates, stating that pressure from U.S. President Trump would not influence the Fed’s responsibilities. Following the rate announcement, the market almost eliminated the possibility of a rate cut in June.

Market Reaction Cautious

After the announcement, the price of Bitcoin saw a slight increase. At the time of writing, Bitcoin was hovering around $97,000, up 1.25% in the past 24 hours. Kirill Kretov, Senior Automation Expert at CoinPanel, stated:
“Currently, market positioning is more cautious than aggressive, with the derivatives market predominantly showing structural ### ease, rather than directional betting. There are no signs of hedging against downside risks, and long traders have not exhibited excessive risk repricing behaviors.”
Data indicates that current market sentiment is primarily one of wait-and-see. K33 analysts recommend that Bitcoin investors adopt a “May hold and wait” strategy, noting that the trend in the summer of 2025 may differ from the previous few years’ summer lull.