The eagerly anticipated interest rate decision from the Federal Reserve has finally been revealed, causing a ripple effect in the crypto market. As expected, the Fed decided to keep interest rates unchanged, leading to a $1000 drop in the price of Bitcoin.
This decision means that the Fed’s benchmark interest rate will remain at its highest level in 23 years, ranging from 5.25% to 5.5%, for the next year. All eyes are now on Powell, who is scheduled to hold a press conference at 21:30. Investors are eagerly awaiting his insights into the central bank’s view on the economy and any potential interest rate adjustments for the rest of the year.
Experts had already predicted that the Fed was unlikely to cut interest rates, given the current economic indicators. Despite a slight decrease in the annual inflation rate to 3.3%, it still remains above the Fed’s target of 2%. Inflation has been a major concern for policymakers, who aim for a stable and low inflation rate to make informed decisions on saving, borrowing, and investing.
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