Breaking: U. S Fed Reserve Pauses Interest Rate Hike
Summary: The Federal Open Market Committee (FOMC) announced on Wednesday that it will stop interest rate rises and hinted at the possibility of more rate hikes later in 2023. Bitcoin's price initially responded to the delay by moving sideways. The FOMC meeting was closely watched by traders.
As was largely anticipated by the financial markets, the Federal Open Market Committee (FOMC) stated on Wednesday that it will stop interest rate rises. The Fed has hinted at the possibility of more rate hikes later in 2023.
This follows a 0.1% month-over-month increase in the Consumer Price Index (CPI) in May 2023, which contributed to the lowering inflation rate in the United States. Meanwhile, early reactions from the Bitcoin price demonstrate a positive trend after the Fed’s announcement.
Crypto Market Remains Stable
Bitcoin’s price first responded to the delay in rate hikes by moving sideways. There is a risk of a pump and dump for Bitcoin if there are signs of rate rises later in the year.
It was previously said that the upcoming FOMC meeting would be closely watched by traders for any indication of whether or not the Fed will signal a rate increase. It was speculated that the US Federal Reserve’s predictions of its future choices may influence the direction of market prices.
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However, the vast majority of US Federal Reserve officials anticipate rate reductions in 2024. The FOMC decision caused a dramatic drop of 0.45% in the S&P 500 Index and a drop of 0.52% in the Nasdaq Composite Index.