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Alex Dovbnya
The Fed has signaled it remains committed to raising interest rates next year, driving crypto and stocks lower
The US Federal Reserve raised the benchmark interest rate by 50 basis points, in line with analysts’ expectations.
Following the most recent increase, the federal funds rate is now between 4.25% and 4.5%, the highest since 2007.
The central bank has indicated that it will continue raising interest rates in 2023 to bring down inflation.
Bitcoin price fell more than 3% on the news as the central bank continues to maintain its hawkish outlook. Earlier today, the biggest cryptocurrency surged to $18,373, the highest level since Nov. 9 on the Bitstamp exchange.
Image by tradingview.com
All three major stock indices also turned negative, with the S&P 500 falling 0.5%.
As reported by U.Today, risk assets rallied earlier this week on colder than expected consumer price index (CPI) data.
Inflation is still far from the Fed’s 2% target, which probably means that the central bank will not turn to a more accommodative monetary policy.
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Sources 2/ https://news.google.com/__i/rss/rd/articles/CBMiSmh0dHBzOi8vdS50b2RheS9iaXRjb2luLXBhcmVzLWdhaW5zLWFzLWZlZC1hbm5vdW5jZXMtYW5vdGhlci1iaWctcmF0ZS1oaWtl0gFOaHR0cHM6Ly91LnRvZGF5L2JpdGNvaW4tcGFyZXMtZ2FpbnMtYXMtZmVkLWFubm91bmNlcy1hbm90aGVyLWJpZy1yYXRlLWhpa2U_YW1w?oc=5 The mention sources can contact us to remove/changing this article |
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