Fed Leaves Rates Steady, Expects Weaker Growth, Sticky Inflation
As it was near-universally expected, the U.S. Federal Reserve left benchmark interest rates steady at 4.25%-4.50% on Wednesday at the June meeting.
"Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace," the press release said. "The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated."
The Fed's quarterly economic projections—which include the "dot plot" that indicates where the central bank expects the Fed funds rate over time — showed that policymakers see rates at 3.9% by year-end 2025, translating to 50 basis point cuts this year, the same as they expected in March. However, Fed members see rates decline to 3.6% next year and 3.4% in 2027, indicating fewer rate cuts than their previous projection.
Policymakers also cut their economic growth projections, with the GDP increase this year now seen at 1.4% versus 1.7% at the March forecast. They also projected higher inflation for this year, with Personal Consumption Expenditures (PCE) and core PCE inflation landing at 3% and 3.1%, versus 2.7% and 2.8% in March. Fed members also see the unemployment rate rising to 4.5% this year and during 2026, up from 4.4% and 4.3% March projections.
Bitcoin (BTC), hovering around $104,000 earlier during the session, was little changed at $104,200 minutes following the Fed decision. The S&P 500 and the Nasdaq indexes were up.
"The Fed's dot plot reveals a clear trend toward stagflationary pressures, a scenario where economic growth slows while inflation and unemployment remain uncomfortably high," said David Hernandez, crypto investment specialist at digital asset manager 21Shares.
That combination historically eroded the value of traditional investments and fiat currencies, but it could be beneficial for bitcoin due to its scarcity, borderless nature, and lack of dependence on U.S. economic output.
"New capital will inevitably search for assets that offer a store of value and potential for growth, a search that leads many directly to BTC," Hernandez said.UPDATE (June 18, 19:31 UTC): Adds analyst comment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
an hour ago
- Forbes
Trump Confirms ‘Massive' Crypto Price Game-Changer As ‘Trillions' Predicted To Hit Bitcoin Market
Bitcoin and crypto prices have rocketed over the last year as traders bet on U.S. president Donald Trump's administration boosting prices (helped by Treasury secretary Scott Bessent issuing a huge crypto market prediction). Front-run Donald Trump, the White House and Wall Street by subscribing now to Forbes' CryptoAsset & Blockchain Advisor where you can "uncover blockchain blockbusters poised for 1,000% plus gains!" The bitcoin price topped $100,000 late last year and has rebounded back above the psychological level after plunging along with stocks as a result of Trump's so-called Liberation Day of global trade tariffs—with a fresh bitcoin price crash fear suddenly emerging. Now, as Coinbase issues a serious bitcoin price warning, Trump has said the Senate passing a key piece of stablecoin legislation will lead to 'massive' crypto investment. Sign up now for the free CryptoCodex—A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin and crypto market bull run U.S. president Donald Trump has predicted "massive" crypto investment as a result of the Genius Act ... More stablecoin bill—something many expect to boost the bitcoin price and crypto market. 'The Senate just passed an incredible bill that is going to make America the undisputed leader in digital assets," Trump posted to his Truth Social account, referring to the so-called Genius Act stablecoin bill and adding the U.S. is going to 'show the world how to win' with bitcoin and crypto. 'Nobody will do it better, it is pure Genius! Digital assets are the future, and our nation is going to own it. We are talking about massive investment, and big innovation.' The stablecoin market—dominated by Tether's USDT and Circle's USDC—has rocketed from almost zero 10 years ago to $250 billion today, with Wall Street, the world's biggest retailers and Silicon Valley technology giants scrambling to grab a slice of the red-hot market. This week, U.S. lawmakers in the Senate voted 68-30 to approve the bipartisan 'Guiding and Establishing National Innovation for U.S. Stablecoins,' known as the Genius Act, which would establish a regulatory framework for stablecoins, legitimizing their use for issuers and custodians. Before the bill can be sent on to U.S. president Donald Trump's desk for his signature, it must be voted through the House of Representatives. House lawmakers can either vote on it as written or pursue changes that will require a final round in the Senate. 'The House will hopefully move lightening fast, and pass a 'clean' Genius Act,' Trump said. 'Get it to my desk, ASAP—no delays and no add ons.' Sign up now for CryptoCodex—A free, daily newsletter for the crypto-curious The bitcoin price has surged over the last year, helped by U.S. president Donald Trump's embrace of ... More bitcoin and crypto. Meanwhile, Trump's crypto czar David Sacks has echoed a crypto market prediction made by U.S. Treasury secretary Scott Bessent, telling Bloomberg he expects the stablecoin bill will lead to the dollar-pegged stablecoin market surging 10-fold from $250 billion to trillions of dollars. 'The float is expected to grow from $250 billion to trillions of dollars," Sacks said, adding he expects 'blockchain-based infrastructure will be used as a new kind of dollar-based payment system,' calling it the 'payments system of the future.' Attention is now shifting to the crypto market structure legislation known as the Clarity Act, which has been described by senator Cynthia Lummis as step two in the Trump administration's three-step plan for crypto legislation, with step three getting the bitcoin strategic reserve signed into law. The Genius Act's passage through the Senate "brings us one step closer to becoming a welcoming home for digital asset companies. Now, let's finish the job and pass market structure legislation to fulfil [Trump's] vision of becoming the crypto capital of the world," Lummis posted to X.
CNBC
an hour ago
- CNBC
Berkshire shares drop double digits as 'Buffett premium' disappears, and some expect more selling
Warren Buffett once predicted that Berkshire Hathaway stock would rise when he eventually steps down. So far, the opposite has happened. Since May 3, when the "Oracle of Omaha" announced his plans to hand over the reins, the stock of his conglomerate has fallen more than 10%, underperforming the S & P 500 by about 15 percentage points. The sell-off partially reflects the so-called Buffett premium, or the extra price investors are willing to pay because of the billionaire's unmatched record and exceptional capital allocation skills. "I am actually surprised at the magnitude of Berkshire's underperformance … especially since Buffett is not stepping down as CEO until Dec. 31," said David Kass, a finance professor at the University of Maryland and a longtime Berkshire shareholder. "This relative decline may approach as much as 20% in the weeks ahead as some shareholders may become discouraged by Berkshire's recent price performance." BRK.A mountain 2025-05-02 Berkshire Hathaway class A shares since Buffett announcement Buffett said he decided to step down as CEO while remaining as chairman of the board after experiencing the physical effects of aging. The investing legend expressed his confidence in his successor Greg Abel's ability to carry on Berkshire's culture , which Buffett built so meticulously. Part of the reason for the poor performance of the stock could be attributed to Berkshire's first-quarter earnings decline. Operating earnings, which include the conglomerate's fully owned insurance and railroad businesses, fell 14% to $9.64 billion during the first three months of the year. "I think the first couple days after the announcement were definitely related to the Buffett premium," said Kevin Heal, a Berkshire analyst at Argus Research. "Also of the mindset that it was heavily algo related. Later moves down I believe were due to the underlying assets both public and private." Meyer Shields, a Berkshire analyst at Keefe, Bruyette & Woods, said his rough guess is that there is still a 5% to 10% Buffett premium in the stock, reflecting some investors' confidence that he'll still be there as chairman. Kass said there may be an additional decline in the shares after Buffett departs at the year's end. Berkshire is falling from a record high on May 2, a day before its latest annual meeting. The company is still worth more than $1 trillion in market cap.
Hamilton Spectator
an hour ago
- Hamilton Spectator
Electra Commences Early Works to Support Restart of North America's Only Cobalt Refinery
TORONTO, June 19, 2025 (GLOBE NEWSWIRE) — Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) ('Electra' or the 'Company') announces the launch of an early works program at its cobalt refinery north of Toronto, reaffirming the Company's commitment to onshoring North America's critical minerals processing and building a resilient, domestic battery materials supply chain. The early works program encompasses targeted site-level activities designed to prepare for the restart of full-scale construction. The initiative reflects growing momentum around the project, supported by strategic funding from both the U.S. and Canadian governments. The work, budgeted at approximately C$750,000, is particularly focused on advancing the solvent extraction facility. 'The early works program represents a critical step in transitioning the refinery site back to construction mode,' said Mark Trevisiol, Vice President, Projects at Electra. 'By focusing on key infrastructure, particularly in the SX area, we are ensuring the site is ready for a seamless ramp-up as soon as full funding is in place.' Work scheduled over the summer will focus on advancing high-priority activities in the solvent extraction (SX) area, which is a key component of Electra's hydrometallurgical refining circuit. Crews will relocate and install SX processing equipment previously delivered to site, pour reinforced concrete bases for the SX tanks, and complete structural roofing work on the SX building. In parallel, tender preparation and engineering support activities will proceed to facilitate the transition to full construction. These works follow a C$200,000 investment earlier this year into the septic, power and lighting systems, as well as the recent delivery and placement of the site's prefabricated electrical house, all further enhancing construction readiness. 'This project reflects our disciplined approach to advancing the refinery project,' said Electra CFO, Marty Rendall. 'The early works program enables us to build critical infrastructure and maintain project momentum while we work to finalize the remaining elements of our funding package.' The early works initiative is partially supported by a US$20 million award from the U.S. Department of Defense under the Defense Production Act, announced in August 2024. This funding underscores the strategic role of Electra's refinery in strengthening domestic industrial capacity and securing North America's critical minerals supply chain. The project has also received support from Canada's Strategic Innovation Fund. 'Our early works program is a clear signal: Electra is not standing still,' said Trent Mell, CEO of Electra. 'The early works program lays the physical and operational groundwork to accelerate into full construction. We are confident in our project and its strategic importance. Preparing for the final leg of construction is a reaffirmation of our commitment to delivering North America's only battery-grade cobalt refinery.' Electra's refinery is the only project in North America designed to produce battery-grade cobalt sulfate at scale. By integrating advanced hydrometallurgical processing and pursuing low-carbon production pathways, Electra is redefining how critical minerals are refined, offering a cleaner, traceable alternative to overseas supply chains. Following a temporary pause in construction in 2023, Electra has continued to make strategic progress toward completing the remaining financing needed to bring the cobalt sulfate refinery into full commercial operation. With foundational funding already secured, including significant contributions from both the U.S. and Canadian governments, the Company is actively advancing complementary funding initiatives to support project completion. Backed by strong government endorsements and the refinery already significantly advanced, Electra expects it will be able to finalize the balance of the financing required to move the refinery into production. About Electra Battery Materials Electra is a leader in advancing North America's critical minerals supply chain for lithium-ion batteries. Currently focused on developing North America's only cobalt sulfate refinery, Electra is executing a phased strategy to onshore critical minerals refining and reduce reliance on foreign supply chains. In addition to establishing the cobalt sulfate refinery, Electra's strategy includes nickel refining and battery recycling. Growth projects include integrating black mass recycling at its existing refining complex, evaluating opportunities for cobalt production in Bécancour, Quebec, and exploring nickel sulfate production potential in North America. For more information, please visit . Contact Heather Smiles Vice President, Investor Relations & Corporate Development Electra Battery Materials info@ 1.416.900.3891 Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Cautionary Note Regarding Forward-Looking Statements This news release may contain forward-looking statements and forward-looking information (together, 'forward-looking statements') within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as 'plans', 'expects', 'estimates', 'intends', 'anticipates', 'believes' or variations of such words, or statements that certain actions, events or results 'may', 'could', 'would', 'might', 'occur' or 'be achieved'. Forward-looking statements are based on certain assumptions, and involve risks, uncertainties and other factors that could cause actual results, performance, and opportunities to differ materially from those implied by such forward-looking statements. Among the bases for assumptions with respect to the potential for additional government funding are discussions and indications of support from government actors based on certain milestones being achieved. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in the management discussion and analysis and other disclosures of risk factors for Electra Battery Materials Corporation, filed on SEDAR+ at and on EDGAR at . Other factors that could lead actual results to differ materially include changes with respect to government or investor expectations or actions as compared to communicated intentions, and general macroeconomic and other trends that can affect levels of government or private investment. Although the Company believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A photo accompanying this announcement is available at
