- At its 17 June FOMC meeting, the US Fed kept rates unchanged in the 3.5%-3.75% range.
- This was the first FOMC meeting under Kevin Warsh, the new Fed Chairman after Jerome Powell.
- A vote to keep rates constant was taken, with unanimous support from all FOMC members.
- High inflation was the key reason for not cutting interest rates.
Fed Keeps Interest Rates Constant
The US Federal Reserve, under its new chairman, Kevin Warsh, held its first Federal Open Market Committee, in which the interest rates remained constant at a window of 3.5% to 3.75% (repo-reverse repo window).
The meeting passed the decision to keep interest rates constant with unanimous voting. The reason cited for the decision was that US inflation still remains high above the 2% target of the Federal Reserve. The figures for the last month were at 4.2% in May 2026 (data published on June 12, 2026). Oil and gas price-driven inflation remains a key factor in rising prices.
This was the first meeting after Jerome Powell exited the Fed as chairman in April, although he remains a board member till 2028.
Bitcoin Slides Below $65k, Market Sees Slight Bearishness
Most cryptocurrencies were slightly bearish after the Fed kept the rates constant. This price stability was possible because there were few to no expectations of a rate cut at the current FOMC meeting.
However, Bitcoin held $64k levels despite crashing after a similar decision in the previous Fed meeting. Ethereum, however, struggles to cross $2000. Other cryptocurrencies like BNB, XRP, and SOL also remain bearish.
The overall mood of the crypto markets is in a bearish mode, indicated by the Fear and Greed Index (CMC) at 22.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
