Despite mounting pressure from US President Donald Trump for a Federal Reserve (Fed) rate cut, the Jerome Powell-led financial body has kept benchmark interest rates steady.
The Federal Open Market Committee (FOMC) voted 9-2 on 30 July 2025, to hold interest rates steady and maintain the federal funds target range between 4.25% and 4.5% for the foreseeable future.
This benchmark influences not only the cost of overnight lending between banks but also everyday borrowing, such as mortgages and credit card loans.
Governors Michelle Bowman and Christopher Waller opposed the stay of the Fed rate cut. Both Bowman and Waller had pushed for an easing of the rates, citing an under-control inflation and softening of the labour market.
Their opposition marked the first instance in over three decades where more than one governor voted against the committee’s rate stance. The post-meeting statement only made minimal tweaks to the Fed’s economic outlook.
Trump just shredded Jerome Powell and frankly, given that there were 2 dissents for the first time in 32 years…I’m okay with that post by the President.
— Dr. J.J. by the Bay 🇺🇸🇮🇱 (@flagg_colonel) July 31, 2025
“Although swings in net exports continue to affect the data, recent indicators suggest that the growth of economic activity moderated in the first half of the year. The unemployment rate remains low, and labour market conditions remain solid. Inflation remains somewhat elevated,” the Fed’s policy document stated.
Powell said that he aims to act at just the right time, i.e. avoiding any premature moves that could revive inflation or delay so long that jobs are lost and unemployment climbs.
He has adopted a wait-and-see approach as speculations rise that the ongoing tariff wars could reverse the central bank’s 2% inflation target.
TOO LATE POWELL … It really is ridiculously political at this stage. Taken in a moment of time, he has an argument … looking at his history … political hack that has gotten so so much wrong in recent years. pic.twitter.com/vpIR1UBTSO
— Barry P (@bp353404) July 31, 2025
Trump had urged the Fed to slash its benchmark by 3 percentage points, saying it would lower debt costs and boost the struggling housing market.
Explore: Top 20 Crypto to Buy in July 2025
What Does Stay On Fed Rate Cut Mean For Crypto?
Crypto industry insiders have been closely monitoring the development.
A publication quoted Nick Ruck, director at LVRG research, stating, “If the Fed maintains its cautious stance, the bull market’s pace may slow, but the underlying liquidity surge could keep the floor intact for an eventual rebound.”
Henrik Andersson, Chief Investment Officer at Apollo Capital, was also quoted, saying, “The market had priced in that there would be no rate cut this week, so this is no surprise.”
However, he added that the market participants still anticipate one or two rate cuts by the end of the year.
📉 Bitcoin slips to $117.8K, Ether & XRP down as much as 2.5%, ahead of crypto policy report and Fed hold. A cautious prelude or structural reset? #Fed #CryptoMarkets #BTC
— The Decentral (@DecentralNewsUS) July 31, 2025
On the flipside Dan Raju, the CEO of Tradier, a brokerage platform, stated that crypto asset prices often move in the same direction as retail stock investments, reacting to similar market methods.
Raju stated, “In general, high interest rates scare investors away from riskier investments like crypto, and the lowering of rates will be seen as a positive by the crypto investor community.”
While the crypto market dipped briefly after the announcement, it has since then bounced back during Thursday morning trading in Asia, with total market capitalisation hovering around $3.94 trillion.
Meanwhile, Powell’s remarks slashed the likelihood of a September Fed rate cut from 63% to just 40% following the FOMC statement.
Historically, US rate cuts have boosted crypto assets since lower yields on traditional savings drive investors towards higher-risk, higher-reward instruments like cryptocurrencies.
Explore: The 12+ Hottest Crypto Presales to Buy Right Now
Memecoins Regain Spotlight! Is TOKEN6900 The Best Crypto To Buy?
While investors recalibrate their portfolios in response to the Fed’s steady stance, speculative assets such as meme coins are once again drawing attention and none more so than TOKEN6900, an Ethereum-based token that embraces its “lack of utility.” TOKEN6900’s peak tongue-in-cheek ironic transparency positions itself as “the most honest asset in the market.”
It’s no roadmap whitepaper, and self-aware branding drew early buzz during its presale. Despite its satirical tone, TOKEN6900’s tokenomics are serious: 80% presale allocation, a $5 million cap, and dynamic staking yielding over 400%.
With a launch valuation of $6.25 million and audited smart contracts, it’s capturing the risk appetite often triggered when traditional markets stall.
Explore: 9+ Best High-Risk, High-Reward Crypto to Buy in July 2025
Key Takeaways
- The FOMC stated the Fed rate cut and will maintain the federal funds target range between 4.25% and 4.5%
- Industry experts suggest that market participants expect one or two rate cuts by the end of the year
- The crypto market dipped after the news but has since then bounced back
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