Fed Holds Interest Rates Steady Amid Global Tensions

The Federal Reserve has maintained its interest rates at 3.50%-3.75%, as widely expected, following its July 28-29 FOMC meeting.

Fed Chair Warsh revealed three major reasons for the central bank's decision: a temporary surge in energy prices and AI-related costs may not necessitate an interest rate hike, the Fed's newly formed task forces need more time to study long-term issues such as inflation and economic impact of AI, and a rate hike could intensify tensions with the Trump administration.

The decision has sparked a positive sentiment in the crypto market, with Bitcoin trading above $64k and Ethereum priced at $1,892. The overall crypto market value is $2.19 trillion, with a marginal 0.64% surge.