www.theblock.co 2 h Reading time: ~2 m
The U.S. Federal Reserve raised the federal funds rate by 50 basis points, increasing it to a range of 4.25% to 4.5%, the highest since 2007.
Today’s interest rate decision was largely expected, with traders pricing in such a rise ahead of time. The price of bitcoin dipped below $18,000 following the news.
The central bank said it remains “highly attentive” to inflation risks. Policymakers projected rates would peak next year at 5.1% before being cut to 4.1% in 2024. That’s higher than previously predicted.
Source: federalreserve.org & bls.gov.org
Bitcoin immediately fell on the news. The leading crypto by market cap dipped below $18,000 briefly, from $18,355 before the announcement. The move appears to be a classic example of “buy the rumor, sell the news.”