Federal Reserve Raises US Interest Rate by 75 Basis Points; Bitcoin Rises
The Federal Reserve on Wednesday raised interest rates by 75 basis points (0.75 percentage point) to a range of 3.75 to 4 percent, in a move that was widely anticipated by market participants, including bitcoin (BTC) traders.
This marks the fourth consecutive time the Fed raised rates by three quarters of a percent, although recent outings by central bankers suggest that it could be the last move of this magnitude. San Francisco Federal Reserve President Mary Daly, for example, warned last month that the Fed could push the economy into an “unforced downturn” if they raised rates too fast.
Bitcoin rose 1.3% in the moments after the announcement by members of the Federal Open Market Committee (FOMC) and traders are now waiting for further clues about the path ahead at Fed Chair Jerome Powell’s press conference at 2:30 PM ET.
“Inflation continues to be sticky and high so rate hikes will continue, but the pace of hiking is set to slow,” said Nick Hotz, vice president of research at Arca. “Any sign of the Fed easing up would be taken as very bullish short-term for digital assets.”