Fed Holds Rates Steady Despite Market and Political Pressure
The U.S. Federal Reserve, which kicked off its interest rate reduction cycle with a 50 basis point cut in September 2024, has since held rates steady throughout 2025.
Despite growing anticipation from crypto investors and political figures alike, the central bank remains cautious.
Fed Chair Jerome Powell has pushed back on political criticism, emphasizing that the central bank remains focused on achieving a sustained decrease in inflation toward its 2% target. Powell noted that any future rate adjustments would depend on evolving economic data, not political pressure.
“We will act based on the incoming data,” Powell said, reaffirming the Fed’s cautious stance during recent remarks.
Fitch Sees Rate Cuts Coming Q4 2025
According to a new report, credit rating agency Fitch Ratings has projected that the Fed will begin cutting rates in the fourth quarter of 2025. The forecast reflects ongoing concerns about inflation trends and the resilience of the U.S. economy.
Fitch’s projection signals that the long wait for rate cuts may continue, potentially impacting market recovery timelines, particularly for interest-sensitive sectors like crypto and tech.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
