Latest News - The Fed Maintains Rates

Drew McFinance
June 28, 2025

Hello McFinancers!

Here’s your weekly round-up of what’s been happening in the world of money, markets, and macro trends: Topics

Fed Holds Rates Steady, Signals Cautious Outlook

The Federal Reserve kept its target interest rate at 4.25% to 4.5%. Officials said the economy is growing at a solid pace, with low unemployment and steady job gains. Inflation is still above the Fed’s 2% goal, but price pressures have eased somewhat. The Fed said uncertainty around the outlook has lessened but is still high. It will keep shrinking its balance sheet and watch data closely to decide if more rate moves are needed.

The Fed’s decision to pause signals stability, but inflation remains a risk. For investors, this means stocks could hold steady while bonds stay sensitive to inflation data. Rate-sensitive sectors like housing and utilities may face pressure. Holding a mix of equities, short-duration bonds, and inflation-linked assets can help manage shifting conditions.

U.S. Executes Record $10 Billion Bond Buyback

On June 3, the U.S. Treasury repurchased $10 billion in government bonds—the largest single bond buyback in U.S. history. The operation received $22.87 billion in bids. The move targets illiquid bonds to improve market function, manage maturities, and reduce interest costs. The Treasury aims to buy back $30 billion per quarter. Analysts note the size of the buyback is small compared to the $36.5 trillion federal debt and unlikely to shift broader market yields.

This signals the Treasury’s focus on liquidity and cost control, not rate policy. Investors should not expect lower yields from this move. Bondholders in older, high-interest notes may see price movement, but broad bond market effects will likely be limited. Keep watch on Treasury issuance trends and demand for longer-dated debt.

Vietnam Approves Crypto Law

On June 14, Vietnam’s National Assembly passed a digital technology law that formally recognizes and regulates crypto assets. The law splits digital assets into “virtual” and “crypto” categories, excluding securities and digital fiat. It also introduces anti-money laundering and cybersecurity rules in line with global standards. Full regulations must be ready by January 1, 2026. The law also supports growth in AI, semiconductors, and data centers with tax breaks and workforce training.

Vietnam is opening its doors to crypto under clear rules. This could boost adoption in Southeast Asia and attract foreign investment in blockchain projects. Investors with exposure to crypto infrastructure or firms targeting emerging markets may benefit. Watch how enforcement develops before 2026, especially as Vietnam looks to exit the FATF gray list.

DeFi Attacks Surge as Hackers Target Infrastructure

Hackers stole $302 million from crypto platforms in May, with Curve Finance among the latest victims. The attackers hijacked Curve’s domain through its registrar, redirecting users despite strong internal security. CertiK reported that code flaws caused $229 million in losses, mostly from a single $225 million attack on Cetus Protocol. Curve’s founder warned that "for-hire" hackers now coordinate cross-platform attacks, exposing the weaknesses of web infrastructure in crypto.

This wave of breaches highlights the risks in decentralized finance. Projects with weak domain or smart contract controls face growing threats. Investors holding tokens tied to smaller or unproven protocols should review exposure. Strong security will become a key trait of durable crypto projects. Security audits and active risk management are no longer optional—they are central to value retention.

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