The long-awaited Fed interest rate decision for cryptocurrency investors has finally been announced. However, this decision alone does not hold much significance. Fed Chairman Powell’s statements, along with other details, will give us significant insights into the 2024 trajectory.
Fed Interest Rate Decision Breaking News
The Fed just announced its interest rate decision and, as expected, kept it unchanged. Cryptocurrency investors have been feeling the impact of the tight monetary policy due to high interest rates for nearly a year. Despite the excitement around artificial intelligence leading to new peaks in US stock markets, cryptocurrencies have not seen stable growth despite many significant developments. Especially in the last few months, both large-volume BTC sales and concerns that the Fed will continue its tight policy for a longer period have negatively affected risk appetite.
Just before the Fed announced the interest rates, FedWatch provided the following probabilities for rate cuts in upcoming meetings.
The details of the decision are as follows;
- In recent months, “some” progress has been made towards the 2% inflation target. In June, “modest” progress was noted.
- Inflation continues to remain “somewhat” high.
- Inflation continues to remain “somewhat” high.
- The Fed reiterates that it does not consider it appropriate to lower interest rates until it gains more confidence that inflation is sustainably progressing towards 2%.
