Finance

The Federal Open Market Committee has decided to hold the federal funds target range at 3.50% to 3.75%, citing a solid pace of economic expansion balanced against persistent inflation concerns. Markets anticipate this 'higher-for-longer' stance may continue deep into next year as policymakers wait for inflation to align more closely with their 2% target. Current projections suggest Treasury yields will remain modestly higher through the end of 2026 as these conditions persist.

Renewed conflict between the U.S. and Iran has introduced fresh volatility into the markets, leading to a spike in crude oil and refined product prices. These rising energy costs have reignited inflation fears, causing a sharp climb in U.S. Treasury yields, with the 10-year note reaching approximately 4.56%. While the stock market's sensitivity to these headlines has weakened compared to earlier in the year, investors remain cautious about the long-term impact on global supply chains.

The cryptocurrency market saw a notable recovery as Bitcoin rallied back above the $64,000 threshold, triggered by a significant short squeeze in derivatives markets. This movement was supported by $90.4 million in spot Bitcoin ETF inflows recorded on July 10, despite an overall negative trend in flows for the past month. Ethereum also shared in the positive momentum, gaining approximately 11% so far in July as institutional interest and corporate treasury allocations continue to grow.