The long-awaited interest rate decision by the Federal Reserve (FED) has been revealed. In line with expectations, the FED has opted to keep interest rates unchanged. Following this announcement, Bitcoin saw a drop of $1000 in value. This decision signifies that the FED's benchmark interest rate will remain steady within the range of 5.25% to 5.5%, reaching its highest point in 23 years and expected to remain unchanged for approximately a year.
The focal point now shifts to Powell, scheduled to conduct a press conference at 21:30. The market eagerly awaits insights from Powell regarding the FED's perspective on the overall economy. Analysts will scrutinize Powell's remarks for any indications regarding potential interest rate adjustments by the FED throughout the year.
Experts have indicated minimal chances of the FED reducing interest rates following the conclusion of its two-day meeting. The objective of maintaining inflation at around 2% is emphasized by FED policymakers to support prudent decisions regarding savings, borrowing, and investments.
The United States has witnessed inflation persistently exceeding the 10-year median rate of 2.1% for over three years. While inflation has decreased in the past two years, it remains above the FED's desired 2% target. The consumer price index, used to measure the US inflation rate, was stable on a monthly basis but exhibited a slight dip in the annual rate to 3.3%.
Please note, this information does not constitute investment advice.
