US Federal Reserve maintains key interest rate. Bitcoin tempor | Crypto Update HQ

US Federal Reserve maintains key interest rate. Bitcoin temporarily drops below $26,000.

On June 14th, the US Federal Reserve (Fed) decided to keep the range for the key interest rate at 5-5.25% annually, marking the first time since March 2022.

The decision aligned with market expectations. According to the Fed, inflation in the US remains high, unemployment is low, and economic activity continues to grow at a modest pace. The agency aims to achieve 2% inflation in the long term.

"The US banking system is strong and resilient. Tighter lending conditions for households and businesses are likely to impact economic activity, employment, and inflation. The extent of these consequences remains uncertain. The committee remains highly attentive to inflation risks," the press release stated.

On June 13th, the US Bureau of Labor Statistics released the consumer price index report, which showed a slower growth rate in May compared to analysts' forecasts—4% growth YoY, down from 4.9%.

The cryptocurrency market had minimal reaction to the news. According to CoinGecko, the prices of the largest cryptocurrencies by market capitalization showed no significant changes.

Bitcoin initially dropped to $25,750 but then rebounded to $26,000. At the time of writing, the total market capitalization of cryptocurrencies remained at $1.1 trillion.

This decision to maintain the interest rate followed a series of 10 consecutive rate hikes. Since March 2022, the range for the key interest rate has increased by 500 basis points.

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