Fed holds rates steady as sticky inflation and geopolitics pressure markets

The Federal Reserve decided to keep the federal funds rate unchanged, holding it between 3.5% and 3.75%, as markets awaited further guidance from Chair Jerome Powell regarding the outlook for inflation and growth. This decision followed upside surprises in inflation data, specifically the February Producer Price Index (PPI), which rose 0.7% month-over-month and 3.4% year-over-year, exceeding forecasts. Compounding this uncertainty are rising geopolitical tensions, particularly between the US and Iran, which fuel concerns about persistent inflation. Consequently, risk assets reacted negatively, with Bitcoin dropping below $72,000 and major indices like the S&P 500 and Nasdaq declining by about 0.7% as investors digest the current economic signals.

(Source：Crypto Briefing)