The Federal Reserve kept interest rates unchanged at its latest meeting, but the statement was unexpectedly hawkish, suggesting that rate cuts may be possible in the future. Despite the rate hike policy starting in 2022, the interest rate has remained at 5.25%-5.50% for more than a year, and Chairman Powell expressed confidence that inflation will return to the 2% target. Bitcoin prices fell slightly to $66,550, still a bit higher than the past 24 hours.

Key Points

Unchanged interest rates but tough policy statement: The Federal Reserve kept interest rates unchanged as expected, but the policy statement was tougher than expected.

Rate cut possibility: Powell pointed out at the press conference that the central bank is "approaching" the time when it may cut interest rates.

Benchmark interest rate maintained: The Federal Reserve's benchmark federal funds rate range remains between 5.25% and 5.50%.

Inflation target: Although inflation has eased, it is still above the Fed's 2% target.

Market reaction: Bond yields and the US dollar rose after the meeting, but remained lower overall on the day.

Rate cut expectations: The market had expected at least a 25 basis point rate cut at the September meeting.

Inflation Optimism: Powell was optimistic that inflation would return to the 2% target and said no decision had been made about a September rate cut.