Fed Raises Interest Rate By 0.5%, Bitcoin No Clear Signals
The US Federal Reserve (Fed) has lowered the temperature to increase interest rates to 0.5% in accordance with the previous commitment. Faced with interest rate news, Bitcoin (BTC) price jumped above $18,000 but quickly corrected back to $17,700.
Late on December 14, the US Federal Reserve (Fed) announced the final interest rate adjustment in 2022, raising the basic interest rate by 0.5%. This is an increase that has been forecast since early November, Fed Chairman Jerome Powell has made a “implicit” statement about reducing the rate of interest rate hike when the inflation situation in the US has shown signs of cooling down.
Thus, in 2022, the Fed has a total of 7 interest rate hikes, bringing the most important parameter for the US economy from 0.25% to 4.5%. This is the highest interest rate the Fed has imposed since the 2008 economic crisis in an attempt to curb US inflation, which has remained at a four-decade high for many months.
However, according to Bloomberg, Fed officials will maintain their strategy of raising rates in 2023, with a full-year target of 5.1%, before falling to 4.1% in 2024.
Federal Reserve Chairman Powell said the Fed’s rate forecast for 2023 would represent the current peak (interest rates), but could not say that the top rate forecast would not be raised.
Inflation in the US in November was 7.1%, continuing to decline sharply in recent months, showing that the Fed’s defiant interest rate hike in 2022 has had an effect.
BTC price on the same day steadily climbed above $18,000, jumping to $18,387 in 15 minutes before interest rate news. However, after that, the price corrected back to 17,700 USD when the market no longer felt surprised.
Fed officials will meet at the end of January 2023 to decide on the next rate adjustment.
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
Website: coincu.com
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Bitcoin
Fed Raises Interest Rate By 0.5%, Bitcoin No Clear Signals
The US Federal Reserve (Fed) has lowered the temperature to increase interest rates to 0.5% in accordance with the previous commitment. Faced with interest rate news, Bitcoin (BTC) price jumped above $18,000 but quickly corrected back to $17,700.
Late on December 14, the US Federal Reserve (Fed) announced the final interest rate adjustment in 2022, raising the basic interest rate by 0.5%. This is an increase that has been forecast since early November, Fed Chairman Jerome Powell has made a “implicit” statement about reducing the rate of interest rate hike when the inflation situation in the US has shown signs of cooling down.
Thus, in 2022, the Fed has a total of 7 interest rate hikes, bringing the most important parameter for the US economy from 0.25% to 4.5%. This is the highest interest rate the Fed has imposed since the 2008 economic crisis in an attempt to curb US inflation, which has remained at a four-decade high for many months.
However, according to Bloomberg, Fed officials will maintain their strategy of raising rates in 2023, with a full-year target of 5.1%, before falling to 4.1% in 2024.
Federal Reserve Chairman Powell said the Fed’s rate forecast for 2023 would represent the current peak (interest rates), but could not say that the top rate forecast would not be raised.
Inflation in the US in November was 7.1%, continuing to decline sharply in recent months, showing that the Fed’s defiant interest rate hike in 2022 has had an effect.
BTC price on the same day steadily climbed above $18,000, jumping to $18,387 in 15 minutes before interest rate news. However, after that, the price corrected back to 17,700 USD when the market no longer felt surprised.
Fed officials will meet at the end of January 2023 to decide on the next rate adjustment.
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
Website: coincu.com
Foxy
Coincu News
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