Crypto: Fed Holds Rate Steady As Recent Dollar Slide Fuels Bitcoin, Crypto...

The FOMC paused rate cuts, but a weakening dollar may be doing the easing instead, reshaping expectations for Bitcoin, crypto markets and US monetary policy.

The US Federal Reserve voted to leave interest rates unchanged on Wednesday, a decision that was widely anticipated by investors. While the move signals a pause for now, market commentators suggest a path toward monetary easing could still emerge indirectly.

Members of the Federal Open Market Committee (FOMC) voted to hold the federal funds rate steady for the first time since July, keeping it in a range of 3.5% to 3.75%, while cautioning that inflation remains “somewhat elevated.”

Two Fed officials dissented, voting in favor of an additional 25-basis-point rate cut.

The Fed’s wait-and-see approach places it at odds with US President Donald Trump, who has repeatedly called for massive rate cuts. However, some analysts argue that Trump may still get his way through market forces.

After posting its worst annual performance since 2017, the US dollar has continued to weaken this week, with the Bloomberg Spot Dollar Index sliding to four-year lows.

Asked about the dollar’s decline, Trump downplayed the move, saying, “The value of the dollar is great.”

For markets commentator The Kobeissi Letter, this is “a clear signal that President Trump is willing to tolerate a weaker Dollar to push rates lower and boost US exports.”

That view was echoed by David Ingles, chief markets editor at Bloomberg TV APAC, who said: “President Trump may effectively be cutting rates on the Fed’s behalf by letting the dollar slide.”

Related: Is the Bitcoin-versus-gold chart completely broken?

Source: CoinTelegraph