The US Federal Reserve has chosen to maintain its key interest rate at a range of 4.25 to 4.5 percent, despite pressure from President Trump for cuts to stimulate the economy. Chairman Jerome Powell emphasizes a cautious approach, driven by concerns over inflation and trade tensions. This decision reflects a commitment to a steady monetary policy, even as two members dissented, advocating for a rate reduction amidst ongoing global uncertainty. The impact of the Fed's stance extends beyond the US, influencing global trade dynamics, particularly in regions affected by Trump's tariffs.
In parallel, the Hong Kong Monetary Authority has aligned its base rate with the Fed, reinforcing the importance of international monetary coherence. Expectations for a September rate cut have diminished, with Powell indicating that future changes will hinge on forthcoming economic data. The backdrop of Trump's tariffs and economic maneuvers adds complexity to the Fed's decisions, leading to speculation about the future of interest rates. Amid these developments, the cryptocurrency market has reacted, reflecting the intricate interplay between monetary policy and investor sentiment.
