Federal Reserve Remains Hawkish Amid Inflation Concerns

The Federal Reserve reaffirmed its hawkish stance at the July 2025 meeting, continuing to raise interest rates to combat persistent inflation. This decision has significant implications for financial markets and cryptocurrency. While raising rates is aimed at controlling inflation, it creates a risk-averse environment that could impact crypto markets like Bitcoin (BTC) and Ethereum (ETH). The Fed’s cautious approach has led to a tightening of liquidity in speculative assets. Recent market developments have not altered the Fed’s stance, with rates remaining elevated as inflation concerns persist.