With inflationary tensions on the rise and an uncertain economic environment, the Federal Reserve (Fed) – the US central bank – remains resilient in its cautious approach. Despite mounting pressures, interest rates were held steady at their latest meeting on Wednesday.
The Fed kept its benchmark interest rate in the 5% to 5,25% range, a move not seen since January 2022, marking the first time this year the bank has decided not to change rates after a policy meeting. . This stability, however, may be short-lived.
The specialists of Fed are signaling that more rate hikes may be on the horizon. Their forecasts indicate that rates could rise as high as 5,6% by the end of 2023. That would mean two additional rate hikes this year, according to projections, with three experts seeing rates approaching 6%.
This preventive measure is an effort to tame the stubborn inflation that has worried economists and caused a series of uncertainties in the market. However, policymakers expect interest rates to fall by 100 basis points to around 4,6% next year, up from the 4,3% forecast in March.
In its statement, the Fed emphasized that the decision to keep the target stable at this meeting allows the committee to assess additional information and its implications for monetary policy. This means that there is still the possibility of further increases this year, depending on future economic and financial developments.
Fed policies have a big impact on the cryptocurrency market, since the fluctuations in interest rates may affect the attractiveness of cryptocurrency investments over other investment options.
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Live: Federal Reserve (Fed)
Bitcoin price
After disclosure, the bitcoin price it has lost the $26.000 support and is in a downside correction near $25.840,40.
