Finance

In the first meeting led by new Chair Kevin Warsh, the Federal Open Market Committee kept the federal funds rate steady at 3.50% to 3.75%. However, the Fed's revamped policy statement and updated 'dot plot' projections signaled a more hawkish stance, with some officials now forecasting potential interest rate hikes later this year to combat persistent inflation.

The digital asset market remains under significant stress, with Bitcoin falling below the $60,000 threshold and reaching its lowest levels since late 2024. Ethereum and other major altcoins have seen even sharper declines as investors rotate out of high-risk assets following hot inflation reports and waning appetite for speculative holdings.

The third estimate for first-quarter 2026 GDP showed the U.S. economy grew at a 2.1% annual rate, up from previous estimates and supported by solid consumer and business spending. Despite this resilience, the Personal Consumption Expenditures index reached its highest level since late 2023, keeping headline inflation above the Federal Reserve's 2% target.