Fed Chair Powell Keeps Rates at 4.5% Amid 0.1% CPI Drop and Negative GDP, Bitcoin Falls, 89% Chance Rates Hold

Federal Reserve Chair Jerome Powell indicated no plans to cut interest rates in the near term despite recent economic data showing a 0.1% month-over-month decline in the Consumer Price Index and negative GDP growth projections. Powell acknowledged concerns about the economy and tariffs but maintained the federal funds rate at 4.5%, signaling a steady monetary policy stance. Market participants had anticipated hints of potential rate cuts, especially in light of comments from other Fed officials like Christopher Waller, but Powell's remarks did not provide such indications. Following Powell's statements, market reactions included declines in Bitcoin and broader equities. Probabilities from market predictors suggest an 89% chance that interest rates will remain unchanged in the upcoming Federal Reserve meeting, with some speculation about possible leadership changes from political figures.