Following its biennial policy meeting, the Federal Reserve maintained interest rates at their current level on Wednesday.
This is the sixth instance in which the central bank has paused its rate adjustments since it began increasing rates in March 2022.
The Federal Reserve decided to maintain interest rates due to a combination of significant inflation and a stable job market.
Authorities expressed their need for more data indicating a consistent and ongoing approach of inflation towards the 2% mark, prior to implementing rate cuts.
In a Wednesday press conference, Fed Chairman Jerome Powell said that while short-term inflation projections are increasing, long-term expectations remain consistent across all metrics.
Experts in the industry, such as BitOoda’s Mike Tauckus, forecast that Bitcoin may potentially drop below $53,000 unless a certain market catalyst occurs.
Based on CME Group statistics, the probability of a rate decline before June is quite unlikely, with estimates indicating a rate of approximately 9%.
The Federal Reserve maintains a conservative approach in managing inflation and promoting economic development. Market analysts and investors are closely monitoring policy decisions.