Fed Doesn’t Raise Interest Rates, Bitcoin Stabilizes At $26,000
Key Points:
- During today’s FOMC meeting, the Fed decided not to increase its federal funds’ rate, halting a continuous string of aggressive rises stretching back to March 2022.
- Bitcoin was trading at $26,000 shortly after the pronouncement.
- The central bank needs time to examine the effect of its prior monetary tightening actions on the economy.
The Fed unanimously voted in June’s FOMC to keep the federal funds rate between 5% to 5.25%, citing the need for more time to examine the effect of prior monetary tightening initiatives on the economy.
Markets nearly widely expected the Federal Reserve’s Federal Open Market Committee (FOMC) action, and the price of Bitcoin (BTC) was barely altered in the minutes after the announcement, remaining at slightly under $26,000. The price increase did little to compensate for losses sustained last week when the Securities and Exchange Commission (SEC) sued two of the crypto industry’s biggest companies, Binance and Coinbase, for securities law breaches.
Notwithstanding the weakness of the US currency, the central bank is in a position to support the market. The FOMC anticipates another 2.25% point increase before the end of the year. According to the Fed’s FOMC economic estimates, the median GDP growth forecasts from 2023 to 2025 are 1.0%, 1.1%, and 1.8%, respectively.
“Inflation remains elevated. The Committee is strongly committed to returning inflation to its 2 percent objective,” the bank said in a statement.
The central bank raised its policy rate throughout the past ten sessions to combat rising CPI inflation, which reached 9.1% in June 2022. Their efforts have resulted in inflation returning to 4% as of last month.
Other monetary policy decisions include standing overnight repurchase agreement operations with a minimum bid rate of 5.25% and a $500 billion aggregate operation limit. Standing overnight reverse repurchase agreement activities at 5.05% with a per-counterparty maximum of $160 billion per day are also included.
The Federal Reserve emphasized that the United States financial system is robust and resilient. Tighter lending conditions for families and companies, on the other hand, are expected to impact economic activity, hiring, and inflation.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Author
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Fed Doesn’t Raise Interest Rates, Bitcoin Stabilizes At $26,000
Key Points:
- During today’s FOMC meeting, the Fed decided not to increase its federal funds’ rate, halting a continuous string of aggressive rises stretching back to March 2022.
- Bitcoin was trading at $26,000 shortly after the pronouncement.
- The central bank needs time to examine the effect of its prior monetary tightening actions on the economy.
The Fed unanimously voted in June’s FOMC to keep the federal funds rate between 5% to 5.25%, citing the need for more time to examine the effect of prior monetary tightening initiatives on the economy.
Markets nearly widely expected the Federal Reserve’s Federal Open Market Committee (FOMC) action, and the price of Bitcoin (BTC) was barely altered in the minutes after the announcement, remaining at slightly under $26,000. The price increase did little to compensate for losses sustained last week when the Securities and Exchange Commission (SEC) sued two of the crypto industry’s biggest companies, Binance and Coinbase, for securities law breaches.
Notwithstanding the weakness of the US currency, the central bank is in a position to support the market. The FOMC anticipates another 2.25% point increase before the end of the year. According to the Fed’s FOMC economic estimates, the median GDP growth forecasts from 2023 to 2025 are 1.0%, 1.1%, and 1.8%, respectively.
“Inflation remains elevated. The Committee is strongly committed to returning inflation to its 2 percent objective,” the bank said in a statement.
The central bank raised its policy rate throughout the past ten sessions to combat rising CPI inflation, which reached 9.1% in June 2022. Their efforts have resulted in inflation returning to 4% as of last month.
Other monetary policy decisions include standing overnight repurchase agreement operations with a minimum bid rate of 5.25% and a $500 billion aggregate operation limit. Standing overnight reverse repurchase agreement activities at 5.05% with a per-counterparty maximum of $160 billion per day are also included.
The Federal Reserve emphasized that the United States financial system is robust and resilient. Tighter lending conditions for families and companies, on the other hand, are expected to impact economic activity, hiring, and inflation.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
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