BREAKING NEWS: The FED has announced the eagerly awaited Interest rate decision! Here is Bitcoin's initial reaction!

The FED kept interest rates unchanged as expected.

Following the unsurprising development, Jerome Powell's meeting scheduled for 21:30 UTC+3 Turkey time will be closely monitored.

The decision of the FED came at a time when concerns were increasing regarding Trump's trade policies, mass layoffs of federal employees, and broader economic changes. Various economic indicators show that consumer spending and job growth are slowing down. After the initial wave of optimism following Trump's election, economic expansion now appears to be moderate. The federal workforce reductions led by Elon Musk's Department of State Efficiency, (DOGE), have added further pressure by raising concerns about unemployment benefits for local economies and displaced workers.

The economic landscape has also fueled volatility in financial markets. Last week, the S&P 500 entered correction territory, falling 10% from its last peak, its first decline in three years. Investors remain uncertain about the long-term impact of Trump's policies, further complicating the Fed's decision-making.

Former Treasury Secretary Larry Summers stated in an article published on X, "They are facing the toughest problem a central bank can encounter, as this shock is driving prices up in terms of imports and reducing employment in terms of input costs," and described the economic situation as a "stagflationary shock," a view echoed by other financial experts.