At the end of the last session, the Federal Open Market Committee announced to raise interest rates to 75 basis points, raising the benchmark interest rate to 1.5% – 1.75%. This is the highest level since the Covid pandemic began in January. March 2020.
Fed raises interest rates to 0.75%
The US Federal Reserve (FED) has made the latest announcement about raising interest rates to combat inflation in the US.
On June 16, officials of the US Federal Reserve Bank (Fed) announced the latest interest rate at 1.75%, a raise of 0.75% compared to the May adjustment.
The US Federal Reserve responded that US inflation in May 2022 was 8.6%, up to 0.3% compared to April, and exceeded experts’ predictions. This is the highest level of inflation in the past 4 decades in the US, showing that market regulation measures in the first half of 2022 are still insufficient to contain inflation.
The Fed also predicts that interest rates will be 3.4% later this year, meaning another 1.75% increase in adjustments in July, September, November, and December.
During the press conference, Fed Chairman Jerome Powell said:
– The Fed’s goal continues to be to control inflation.
– The Fed will soon narrow the money supply in the market.
– The Fed forecasts that inflation will continue to increase, and everyone can see the impact on the economy.
– Upcoming rate hike will depend on actual inflation data, the next hike could be 0.5% to 0.75%, but a 0.75% increase won’t happen often.
The Fed doesn’t want to push the economy into a recession.
BTC volatility
Before the news of the interest rate hike, Bitcoin fluctuated wildly because of this news even though it had been forecasted before. BTC plummeted from $20,250 to $21,600. On June 15, the BTC price dropped to $20,111, the lowest level since December 2020.
However, after official information about the interest rate increase to 0.75%, BTC price adjusted and rose sharply to $22,500.
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.
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