In a historic move, the Federal Reserve decided to raise the target range for its benchmark interest rate by 0,25% last Wednesday, reaching a range between 5% and 5,25% for the first time since September 2007. This decision carries with it significant implications for the financial market , including the cryptocurrency market.
The action by the US central bank signals a shift in monetary policy in response to economic and financial developments. The basic interest rate, known as the federal funds rate, has been the subject of intense discussion among experts and industry analysts after the failure of some US banks in 2023.
The policy statement of the Fed of March was adjusted to reflect this change in approach, with policymakers removing key language that mentioned further tightening of monetary policy. The new statement emphasizes that the committee will consider several factors when determining the need for further adjustments in monetary policy.
This is the most aggressive rate hike campaign since the 1980s, with the target range for the federal funds rate rising by 5 percentage points since March 2022. Fed officials still view inflation as high and remain " highly attentive” to inflationary risks.
FOMC Press Conference May 3, 2023
The most important part must be left to the free from US Federal Reserve Chairman Jerome Powell, who is scheduled to hold a press conference at (14:30 PM ET / 18:30 PM UTC / 15:30 PM EDT).
