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At their latest meeting, the Federal Reserve decided to keep interest rates unchanged.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/03fc1ed729c148cba6fb495f0a296f11.png" />Fed Chair Jerome Powell indicated that a rate cut might be considered in September. This <a href="https://cryptosheadlines.com/top-7-altcoins-under-0-05-future-potential-watch/" rel="noopener noreferrer nofollow">potential change will depend on future</a> inflation and economic data. Powell emphasized that officials will review these factors carefully before making any decisions on adjusting the rates.<h3 id="strong-fed-maintains-interest-rates-considers-september-rate-cut-strong">Fed Maintains Interest Rates, Considers September Rate Cut</h3>The <a href="https://cryptosheadlines.com/first-time-in-years-federal-reserve-raises-fed-funds-rate-above-5/" rel="noopener noreferrer nofollow">Federal Reserve has decided to keep its key interest rate</a> between 5.25% and 5.5%, citing progress toward its 2% inflation target, according to the recent FOMC update. Fed Chair Jerome Powell mentioned that a rate cut in September is “on the table,” but this will depend on favorable inflation data.Powell emphasized that any decision regarding interest rates will be based on economic indicators rather than political factors. He reassured the public that the Fed remains apolitical, focusing solely on economic stability. “We never use our tools to support or oppose a political party, a politician, or any political outcome,” Powell stated, reinforcing the Fed’s commitment to neutrality.Powell also noted that this will be his fourth <a href="https://cryptosheadlines.com/bitcoins-importance-in-us-presidential-elections-after-grayscales-win/" rel="noopener noreferrer nofollow">presidential election</a> while serving at the Fed, highlighting the institution’s longstanding nonpartisan stance. According to the CME FedWatch Tool, there is an 88% chance of the <a href="https://cryptosheadlines.com/bitcoin-price-rally-expected-with-march-fed-rate-cuts/" rel="noopener noreferrer nofollow">Fed announcing a 25 basis point rate cut</a> in September.<h3 id="strong-market-reactions-to-fed-s-fomc-update-and-powell-s-comments-strong">Market Reactions to Fed’s FOMC Update and Powell’s Comments</h3>Financial markets, especially the cryptocurrency sector, had been closely watching for the FOMC update and <a href="https://cryptosheadlines.com/fed-chair-powells-remarks-boost-btc-spot-etf-flows/" rel="noopener noreferrer nofollow">Fed Chair Jerome Powell’s remarks</a>. While the decision to hold interest rates steady was expected, Powell’s comments on a potential rate cut in September introduced new perspectives.<a href="https://cryptosheadlines.com/bitcoin-rises-to-68k-as-bulls-take-charge/" rel="noopener noreferrer nofollow">Also Read: Bitcoin Rises to $68K as Bulls Take Charge</a>Powell cautioned against assuming a definite rate cut, stating, “We would never try to make policy decisions based on the outcome of an election that hasn’t happened yet. That would be a line we would never cross.” This reflects the Fed’s commitment to making decisions based on economic conditions rather than political events.Powell also downplayed the likelihood of a substantial 50 basis-point rate cut, noting, “I don’t want to be really specific about what we’re going to do, but that’s not something we’re thinking about right now.” His comments suggest a cautious approach, aiming to balance inflation control with economic growth.As a result, investors and analysts will closely track upcoming economic data, which will be critical in shaping the Fed’s future decisions. The potential rate cut in September could significantly impact borrowing costs, investment strategies, and overall economic momentum.Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.Join Cryptos Headlines <a href="https://linktr.ee/cryptosheadlines.com" rel="noopener noreferrer nofollow">Community</a>Follow Cryptos Headlines on <a href="https://news.google.com/publications/CAAqBwgKMLz3-wowvuzoAg" rel="noopener noreferrer nofollow">Google News</a>

Fed Chair Hints at Possible Rate Cut in September

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