{"id":130748,"date":"2026-01-28T20:51:40","date_gmt":"2026-01-28T20:51:40","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=130748"},"modified":"2026-01-28T20:51:40","modified_gmt":"2026-01-28T20:51:40","slug":"bitcoin-price-steadies-near-90000-as-fed-pauses-rate-cuts-powell-signals-neutral-stance","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=130748","title":{"rendered":"Bitcoin Price Steadies Near $90,000 as Fed Pauses Rate Cuts, Powell Signals Neutral Stance"},"content":{"rendered":"

Bitcoin Magazine<\/a><\/p>\n

Bitcoin Price Steadies Near $90,000 as Fed Pauses Rate Cuts, Powell Signals Neutral Stance<\/a><\/p>\n

<\/div>\n

Bitcoin hovered near<\/a> $89,000 on Wednesday as the Federal Reserve opted to hold interest rates steady, pausing its rate-cutting cycle and striking a notably calmer tone on inflation and the labor market.<\/p>\n

The bitcoin price traded above $90,000 earlier in the session<\/a> before slipping to around $89,500 as Federal Reserve Chair Jerome Powell spoke at his post-meeting press conference.\u00a0<\/p>\n

The move came after the Fed announced<\/a> it would keep its benchmark federal funds rate unchanged at a range of 3.5% to 3.75%, ending a streak of three consecutive 25-basis-point cuts delivered in September, October, and December.<\/p>\n

The decision reflected a central bank increasingly comfortable with the economy\u2019s trajectory, even as inflation remains above target. Policymakers cited moderating job growth and lingering price pressures as reasons to pause further easing.<\/p>\n

The Federal Open Market Committee voted 10\u20132 to hold rates, with Governors Stephen Miran and Christopher Waller dissenting in favor of another quarter-point cut.\u00a0<\/p>\n

Miran, whose term expires Saturday, has consistently argued<\/a> for deeper rate reductions. Waller, meanwhile, is one of the potential candidates to succeed Powell as Fed chair and last dissented in July when the Fed also held rates steady.<\/p>\n

\n

JUST IN: Treasury Secretary Scott Bessent says President Trump may pick a new Fed Chair ‘in a week or so’ <\/p>\n

Pro-Bitcoin Rick Reider is currently leading by 10% in the odds for the job \u2014 Polymarket pic.twitter.com\/8IjKqoaYpe<\/a><\/p>\n

\u2014 Bitcoin Magazine (@BitcoinMagazine) January 28, 2026<\/a>\n<\/p><\/div>\n

Fed\u2019s Powell: The economy is expanding at a solid pace<\/h2>\n

In its statement, the FOMC said the economy continues to expand \u201cat a solid pace,\u201d noting that job gains \u201chave remained low\u201d while unemployment has shown \u201csome signs of stabilization.\u201d Inflation, the committee added, \u201cremains somewhat elevated.\u201d<\/p>\n

Powell reinforced that message, emphasizing that after cutting rates by a cumulative 175 basis points over the past year, the Fed now views policy as close to neutral.<\/p>\n

\u201cIt\u2019s hard to look at the incoming data and say that policy is significantly restrictive at this time,\u201d Powell said, describing the current stance as \u201cloosely neutral or somewhat restrictive \u2014 it\u2019s in the eye of the beholder.\u201d<\/p>\n

That framing mattered for markets. Bitcoin has historically responded positively to easing financial conditions, but Wednesday\u2019s price action suggested traders who were prepared for this FOMC decision and were recalibrating expectations for near-term rate cuts rather than reacting to outright hawkishness.<\/p>\n

Powell struck a measured tone<\/a> on the labor market, pushing back against fears of a sharp deterioration. He noted that recent payroll reports showed average job losses of about 22,000 per month, while private-sector hiring remained modestly positive.\u00a0<\/p>\n

Slower labor supply growth, he said, reflected reduced immigration and participation rather than collapsing demand.<\/p>\n

On inflation, Powell pointed to tariffs as a major driver of elevated goods prices, calling them a largely \u201cone-time\u201d effect rather than a source of persistent inflation.\u00a0<\/p>\n

Core personal consumption expenditures inflation stands at 2.9% year over year through December, still above the Fed\u2019s 2% target.<\/p>\n

\u201cThe expectation is that we will see the effects of tariffs flowing through goods prices peaking and then starting to come down,\u201d Powell said, barring new trade actions.<\/p>\n

For bitcoin traders, Powell\u2019s comments reinforced a familiar narrative: the Fed is no longer aggressively tightening, but it is also in no hurry to deliver further stimulus. That middle ground has supported bitcoin\u2019s ability to hold recent gains while capping near-term upside tied to hopes of rapid rate cuts.<\/p>\n

Who will be the next Fed chair?\u00a0<\/h2>\n

The succession question also loomed over the meeting. Asked what advice he would offer his eventual successor, Powell delivered a pointed, three-part response: stay out of politics, stay engaged with Congress, and respect the institution\u2019s staff.<\/p>\n

\u201cStay out of elected politics. Don\u2019t do it,\u201d Powell said, underscoring the Fed\u2019s need to maintain independence at a moment when its authority faces heightened scrutiny, including an ongoing Supreme Court case involving the central bank.<\/p>\n

Waller\u2019s dissent and Miran\u2019s departure have fueled speculation about the Fed\u2019s future leadership and policy direction, a factor increasingly watched by crypto markets sensitive to shifts in monetary philosophy.<\/p>\n

Trump\u2019s pick for Federal Reserve chair could be announced within a week or two, Treasury Secretary Scott Bessent said, according<\/a> to Yahoo Finance.<\/p>\n

On Polymarket<\/a>, Rick Rieder leads the betting to become the next Fed chair at roughly 37%, followed by Kevin Warsh at about 28%, with Christopher Waller a distant third near 15%.<\/p>\n

This post Bitcoin Price Steadies Near $90,000 as Fed Pauses Rate Cuts, Powell Signals Neutral Stance<\/a> first appeared on Bitcoin Magazine<\/a> and is written by Micah Zimmerman<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin Magazine Bitcoin Price Steadies Near $90,000 as Fed Pauses Rate Cuts, Powell Signals Neutral Stance Bitcoin hovered near $89,000 on Wednesday as the Federal Reserve opted to hold interest rates steady, pausing its rate-cutting cycle and striking a notably calmer tone on inflation and the labor market. The bitcoin price traded above $90,000 earlier […]<\/p>\n","protected":false},"author":0,"featured_media":130749,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-130748","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/130748"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=130748"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/130748\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/130749"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=130748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=130748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=130748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}