The Federal Reserve Makes Its Interest Rate Decision! What are the Effects on Gold, Bitcoin, and the Dollar
The Federal Reserve of the United States of America (FED) issued its widely anticipated interest rate decision. The Fed maintained a stable interest rate in the range of 0 to 0.25 percent. With this news, the crypto market’s bullish outlook remained, while the gold price resumed its drop. Bitcoin’s price reversed an began to increase with altcoins all together. With
Market’s reaction to the Federal Reserve’s interest rate announcement.
The Federal Reserve Board issued its much anticipated interest rate decision! Here are the specifics:
The Federal Reserve of the United States, or the FED, eventually released the interest rate decision on which all markets were fixated. The Fed maintained a steady policy rate in the range of 0-0.25 percent. Market expectations were for the policy rate to remain unchanged within this range. However, the released language stated that it would be prudent to begin raising interest rates shortly. Additionally, it was stated that the balance sheet reduction operation will follow the tightening. This demonstrates that it is more in line with aggressive Fed discourse.
The article indicated that with inflation nearing 2% and a robust labor market, the Federal Open Market Committee (FOMC) should begin hiking interest rates shortly. Recent facts in the United States have resulted in a shift in the language about temporary inflation. Fed Chairman Powell declared two weeks ago in a speech that they will do whatever it takes to contain inflation, but added, “There is a long way to normal from where we are now.”
Following the Fed’s rate decision, the markets saw movement. Gold prices declined from $ 1,831 to $ 1,826, but returned to $ 1,830. On the other side, the bitcoin price surpassed $ 38,000 from $ 37,000 and neared $ 39,000. With the growth of BTC, altcoin prices also strengthened their appearance on the green board. At the time of writing, the following is the order of the top ten.