In line with market expectations, the Federal Reserve's Federal Open Market Committee (FOMC) raised its benchmark federal funds rate by 25 basis points to a range of 4.5%-4.75%.
Over the past few days, the price of Bitcoin (BTC) has hovered in a narrow range on either side of the $23,000 level, staying in the region shortly after the announcement.
With a 25 basis point hike largely priced in, markets are looking for clues in the accompanying policy statement as to whether the central bank is considering pausing its monetary tightening cycle. That doesn't appear to be the case so far, with the FOMC signaling the need for "sustained increases" in interest rates.
The interest rate futures market is now pricing in a final fed funds rate of 4.94%, suggesting the Fed has one or two quarter-point rate hikes left before hitting the brakes.
Fed Chair Jay Powell will hold a post-meeting press conference at 2:30 p.m. Wait.
Bitcoin moved higher as Powell spoke, with traders noting that the Fed chief said, the deflationary process has begun.Powell also appeared to suggest that ending the rate-hiking regime was one of the topics discussed at today’s meeting. Aside from Bitcoin – now up to $23,450, stocks and gold have moved into the green, while interest rates and the dollar are slipping.
