Recent FED decisions on interest rates have drawn significant attention in global markets. FED Chair Jerome Powell announced the rates would remain at 4.25%-4.5%, prompting varied reactions in the economic and financial spheres.
American Economy: Maintaining Rates and Consequences
Market expectations were met as the Federal Reserve decided to keep rates unchanged. Economic instability persists: a rising number of layoffs, downwardly revised growth forecasts, and slowing consumption due to high rates. Wall Street's response was cautious, with stocks slightly rising, but questions about long-term sustainability remain.
Inflation: An Unstable Balance for the FED
The FED justifies its decision with the need to keep inflation within a 2% target. However, some analysts fear stagflation, a scenario combining economic slowdown with high inflation. Jerome Powell emphasized: “We remain vigilant regarding the evolution of the economy and will adjust our policy accordingly.”
Bitcoin and Ethereum: The Crypto Market's Reaction
The crypto market keenly responded to FED's announcements. Bitcoin, in a bearish phase, could see a rise, while Ethereum has already increased by 6%. Markus Thielen, CEO of 10x Research, noted: “We could see a counter-trend rally, with prices being oversold.”
FED decisions significantly impact the global economy and crypto market. Investors are keenly watching upcoming policy steps and their effects on financial conditions.
