Powell Freezes Interest Rate - Crash or Rally?

Rate Pause Sparks Market Frenzy

For the fourth consecutive time, the Federal Reserve held interest rates steady at 4.25% to 4.50% during its June 2025 meeting—a move widely anticipated by Wall Street.

Just look at what’s happened since March,” Powell noted. “Growth has slowed, unemployment edged up by 0.1%, and inflation climbed 0.3%. We’re already seeing the impact of tariffs.”

Fed Chair Jerome Powell stressed that patience is key, indicating that rate cuts may arrive “at some point,” but only after waiting “a couple of months” to gain clearer insight into the economic landscape.

Trump Turns Up the Heat

President Donald Trump, who once appointed Jerome Powell as Fed Chair, launched a scathing attack following the Fed's decision to hold rates.

Taking to social media, Trump called Powell “the worst” and “a real dummy,” accusing him of “costing America billions.”

Markets Eye September for Action

🔹With the Fed maintaining its wait-and-see stance, attention now shifts to September as the likely window for the first rate cut.

🔹Futures markets are pricing in a growing chance of action by then, but Chair Powell made it clear: the central bank is in no hurry.

🔹With the Fed continuing to shrink its balance sheet and no immediate rate cuts in sight, risk assets like Bitcoin remain under pressure. Bitcoin slipped below $106K, and macro pressures continue to weigh.

Check out our Bitcoin price prediction for what’s next!

Crypto on Pause — But Not for Long

With the Fed signaling plans to continue shrinking its balance sheet by reducing Treasury securities and bond holdings—a process known as Quantitative Tightening (QT)

While altcoins struggle for direction, some analysts remain confident that Altseason is on the horizon—patience is key. The current weakness may just be the calm before the next major crypto breakout.