Finance

The Federal Reserve held the federal funds rate steady at a range of 3.50% to 3.75% during its June meeting but signaled potential hikes later in 2026. Updated economic projections showed a majority of officials now expect the benchmark rate to rise as sticky inflation persists, with median year-end forecasts shifting to 3.8%. This hawkish pivot follows an inflation surge primarily attributed to energy price volatility and trade tariffs.

Energy prices extended their recent slide as international benchmarks Brent and West Texas Intermediate fell toward four-month lows on reports of a stable ceasefire between Israel and Iran. Easing fears of supply disruptions in the Strait of Hormuz have lowered the geopolitical risk premium, bringing Brent crude under $77 per barrel. Despite the drop in crude costs, the White House has initiated investigations into major oil companies regarding allegations of retail price gouging.

Digital assets experienced broad losses as the sell-off in global technology shares spread to the crypto market, resulting in over $700 million in leveraged position liquidations. Bitcoin dropped toward the $62,000 level, marking a significant weekly decline, while Ethereum fell below $1,700 amid weakened investor confidence. Analysts noted that spot Bitcoin ETFs also recorded record monthly outflows, signaling a period of sustained institutional de-risking.