Liquidity backstops stay active as traders await July jobs data for cut signals.
The Federal Reserve left interest rates unchanged. That’s the fifth straight hold, and traders are feeling the pressure. Crypto markets moved fast, with Bitcoin and Ethereum leading a sharp drop.
Jerome Powell pointed to steady jobs, stubborn inflation, and data still too mixed for cuts. For now, the wait drags on, and risk assets are paying the price.
The FOMC decision kept the federal funds rate locked between 4.25 and 4.5 percent. Powell said growth cooled in the first half of 2025 but remained stable. He also stressed that inflation still sits above the Fed’s 2 percent goal.
Crypto reacted instantly. Bitcoin slid below 116,000 dollars, shedding 2 to 3 percent in hours. Ethereum and other altcoins dropped around 3 percent. On X, traders blamed “tight policy pressure” for what one called a “waterfall sell-off.”
Powell avoided any firm signal on rate cuts. He explained that September’s decision would depend on incoming data. He also underlined that the Fed remains independent despite political calls for faster easing.
EndGame Macro pointed out that two FOMC members even pushed for a cut but didn’t win the vote. That split, while small, signals the first cracks in what has been a united front. Powell, however, stood firm, insisting that inflation control still comes first.
While rates stayed frozen, liquidity tools are quietly at work. The Standing Repo Facility remains capped at 500 billion dollars, effectively offering banks a safety valve.
EndGame Macro described this as the Fed’s “silent backstop,” especially as quantitative tightening continues to drain cash.
