The latest surge in the crypto market has been driven by the , which ended on March 19, 2025. The Federal Open Market Committee (FOMC) voted to keep the federal interest rate between 4.25% and 4.50% taking a cautious stance.
Aside from keeping interest rates unchanged, the Fed updated its economic forecasts. It lowered the real GDP growth forecast for 2025 to 1.7% from 2.1%, indicative of expectations of a slowing economy. The inflation forecast was raised to 2.7% from 2.5%, showing ongoing inflationary pressures.
These changes have triggered fears of stagflation, a situation where the economy grows slowly while inflation remains high. In a recent survey by Bank of America, 71% of fund managers forecast stagflation in the next 12 months.
