Crypto News – After the Federal Open Market Committee’s two-day policy meeting on Wednesday, the Federal Reserve made the much-anticipated decision to keep interest rates at their current level.
Stable Interest Rates: Market Unresponsive After FED Announces Decision
Following six consecutive rate hikes from March 2022 to July 2023, the central bank is currently on a rate hike pause. According to them, central bankers decided to keep interest rates unchanged due in part to ongoing inflation and a robust labor market.
In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.
Wednesday’s statement
The Interest Rate Decision Did Not Affect Stocks or Cryptocurrencies
Fed Chairman Jerome Powell stated during a news conference on Wednesday that central bankers will need to see more proof that inflation is decreasing before reducing rates.
The path forward is uncertain. Although some measures of short-term inflation expectations have increased in recent months, longer-term inflation expectations appear to remain well anchored as reflected in a broad range of surveys of households, businesses and forecasters, as well as measures from financial markets,
Powell
Following the announcement, cryptocurrencies and stocks barely moved. As the Fed made its announcement, Bitcoin moved in a sideways fashion and was trading at roughly $59.077 at the time of writing, according to Coinbase. Ether (ETH) saw flat trading as well, closing the day around $2,991, an increase of roughly 3.01% from the previous day.
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