The Federal Reserve (FED) kept the interest rate unchanged in June. What did Powell and the Fed dot plot reveal? Bitcoin fluctuated at $105,000.

The US Federal Reserve will keep interest rates unchanged, but the dot plot expects the Fed to cut interest rates twice this year, by 1 yard each in 2026 and 2027; Powell said the economy was solid, inflation remained high and the market reacted modestly. (Summary: The US CPI in May was lower than expected across the board, and Trump shouted: the Fed should immediately cut interest rates by 1%, which can pay a lot less interest) (Background supplement: It is difficult for the Fed to cut interest rates early!) U.S. non-farm payrolls in May were higher than expected, Trump shouted: cut interest rates by 100 basis points) Earlier today (19th) Taiwan time, the US Federal Reserve Board (Fed) officially announced its June interest rate decision, announcing that it would keep the federal funds rate unchanged in the range of 4.25% to 4.50%, consistent with previous market expectations. Interest rates remain unchanged, dot plot reveals the pace of rate cuts It is worth noting that the latest dot plot shows that policymakers expect the Fed to cut rates twice this year by 25 basis points each. It will be reduced by 25 basis points each in 2026 and 2027. At the same time, the Fed revised down its median GDP growth in 2025 to 1.4%, while raising its core PCE inflation forecast to 3.1% and the headline PCE to 3.0%. The unemployment rate forecast edged up to 4.5 percent, suggesting that inflation remains stubborn and the labor market is likely to cool, which is not good news for interest rate cut conditions. Fed microphone talks risk to Ball Wall Street reporter Nick Timiraos, who is regarded as a "Fed microphone", pointed out that policymakers choose to wait and see because whether they move or not, there are risks. Chairman Powell also stressed at the press conference: "The economy is in a solid state and inflation levels have been slightly above target. Separately, Powell singled out tariffs, saying they could put pressure on the economy and push inflation higher. Nick Timiraos said: Ball summed up why the Fed expects prices to rise in the short term, but it is difficult to accurately predict the increase: Someone has to pay the tariffs, but it's hard to tell who. "Producers, exporters, importers, retailers, consumers – each side will try to avoid being the one to pay. But in the end, they may share it together, or it may be fully borne by one of them." Powell sums up why the Fed both expects prices to rise in the near term but has such difficulty forecasting the magnitude: Someone has to pay the tariff, but it's hard to know who. "There's the manufacturer, the exporter, the importer and the retailer and the consumer. And each... — Nick Timiraos (@NickTimiraos) June 18, 2025 Initial market reaction muted After the announcement of the decision, the four major indexes of US stocks did not fluctuate much, and the final market was mixed: The Dow Jones Industrial Average fell 0.1% at the end (44.14 points ), close 42,171.66 points Nasdaq up 0.13%(25.18 points ), close 19,546.27 points S&P 500 down 0.03% (1.85 points ), close 5,980.87 points Philadelphia semiconductor index up 0.52%, (27.38 points ), close 5,251.02 points In the crypto market, the price of bitcoin briefly fell below $104,000 in the early morning, but then rebounded and is now reported $104,959, a slight increase of 0.5% in the last 24 hours. Related reports Trump and Ball White House interview "ask the Fed to cut interest rates", Powell reiterated: the Fed adheres to the principle of non-politicization The US CPI hit a four-year low in April" The probability of Fed interest rate cuts increased, bitcoin knocked $105,000, and U.S. stocks rose The tariff storm to the unexpected fall of CPI speculated whether the Fed's interest rate cut could detonate a global asset spree? What does Bauer and the Fed dot plot reveal about Fed interest rates unchanged in June? Bitcoin $105,000 Shock" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".